Cbus

Investment Strategy

Cbus is one of Australia’s largest industry superannuation funds, managing approximately $80 billion in retirement savings. The fund was established in 1984 to provide superannuation for workers in the building, construction, and allied industries in Australia. Today, Cbus serves over 870,000 members and receives contributions from approximately 150,000 participating employers across the construction sector and related industries.

As an industry super fund, Cbus is run on a profit-to-member basis. All investment returns, after costs, flow directly to members’ accounts. The fund’s governance structure includes representation from employer associations and trade unions in the building and construction sector.

Cbus’s investment strategy for its default Growth (MySuper) option employs a diversified multi-asset approach spanning Australian and international equities, fixed income, property, infrastructure, private equity, and private credit. The fund’s long investment horizon, driven by the relatively young average age of its membership base in the construction industry, supports meaningful allocations to illiquid, higher-returning asset classes.

The fund has developed significant internal investment capabilities, particularly in property through its subsidiary Cbus Property. This internal capacity is supplemented by relationships with external managers across all asset classes.

Cbus integrates ESG considerations into its investment process and has been active in addressing workplace health and safety issues within its portfolio companies, reflecting the fund’s connection to the construction industry. The fund is a signatory to the UN Principles for Responsible Investment.

Private Markets Approach

Cbus’s private markets program is one of the most developed among Australian industry super funds, with allocations spanning property, infrastructure, private equity, and private credit.

Property is the standout allocation in Cbus’s alternatives portfolio. Cbus Property, the fund’s wholly owned property development and investment subsidiary, is one of the largest institutional property developers in Australia. Cbus Property develops and manages commercial office towers, residential apartments, mixed-use developments, and industrial properties across major Australian cities. This direct development capability gives Cbus access to property returns across the full value chain, from land acquisition through development and stabilized asset management. The fund also invests in international real estate through external fund commitments.

Infrastructure is a significant allocation for Cbus. The fund invests in infrastructure through fund commitments, co-investments, and in some cases direct holdings. Sectors of interest include transportation, energy, utilities, and social infrastructure. Cbus has exposure to Australian and international infrastructure assets.

In private equity, Cbus commits capital to external buyout, growth equity, and venture funds. The fund has a diversified portfolio of GP relationships spanning North America, Europe, Asia, and Australia. Cbus evaluates private equity managers on track record, team quality, strategy differentiation, and alignment of interests. The fund participates in co-investment opportunities to enhance returns and manage fees.

Private credit has become an increasingly important allocation. Cbus invests in direct lending, mezzanine, and specialty credit strategies through commitments to external managers. These investments provide yield enhancement and diversification relative to the fund’s public fixed income portfolio.

Cbus’s approach to private markets benefits from its construction industry roots, which give the fund particular expertise in evaluating real asset investments. The fund’s property development capabilities and understanding of the built environment are competitive advantages that inform investment decisions across property and infrastructure allocations.