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Cbus builds in-house investment capability

Trish Donohue sees opportunity in new Cbus investment model.

Trish Donohue sees opportunity in new Cbus investment model.

 

Building industry super fund, Cbus, is expanding its in-house investment capability with a plan to boost its investment team from  34 to 59 people this financial year. The new staff will be based in both Sydney and Melbourne.

The Cbus Board recently approved the new investment strategy aimed at capturing advantages of scale for members as its funds pool grows. Funds under management are expected to grow from $34 billion to over $50 billion in the next three to five years.

The new strategy

The three pronged strategy that will drive Cbus into the future involves taking advantage of its long term investment horizons, boosting returns and investment opportunities with a total portfolio approach and targeting investments that have a positive impact on the real economy, particularly through the built environment.

Kristian Fok, Cbus Executive Manager Investment Strategy, said “The recent Blue Ribbon Award from Smart Investor for the best balanced super fund is recognition that Cbus has been on the right track in delivering strong investment outcomes for members. Our new model is a clear path to ensure we continue to deliver for our members into the future in a way that can also make a positive contribution to the economy and society”

“While retaining our current external managers, we’re focussing on the significant direct investment opportunities for Cbus in greenfield infrastructure and small to medium-size brownfield assets. Leveraging our unique value proposition gives us the ability to capture value at many points in greenfield developments through origination, execution and management of infrastructure investments,” Mr Fok said.

“Internal Australian and international equities management also offers the opportunity to build capabilities to manage specific strategies that complement our existing managers,” said Mr Fok.

To ensure the new model is appropriately implemented and supported, resources will also be added to existing expertise in investment legal and compliance, middle office operations, communications, risk management and performance reporting.

Trish Donohue, Cbus Executive Manager Investment Management, said “The fund is on its next exciting journey of growth and change, requiring new ways of investing. Our new model will provide some great opportunities and challenges for the team over the next few years.”

Cbus has over730,000 members,108,000 employers and $34 billion in funds under management.

The New Daily is owned by industry super funds.

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