Investment Approach

Investment Approach

To achieve a net return after tax and fees that is competitive with the other comparable superannuation funds available to current and former employees of the CBH Group, eligible grower members and the spouse of any of these as an alternative to joining the CBH Superannuation Fund.

Investment Objectives

Growth MySuper /Pension Growth option

To seek returns after tax and investment costs that exceeds the change in the Australian Consumer Price Index (CPI)+3.75% per annum over rolling 5 year periods.

Balanced / Pension Balanced option

To seek returns after tax and investment costs that exceed the change in the Australian CPI by at least 3% per annum over rolling 5 year periods.

Cash / Pension Cash option

To minimise the probability of capital loss while at least matching the return of the Bloomberg Ausbond Bank Bill Index over a rolling 5 year period.

Investment Philosophy

The Trustee invests in a combination of directly held and externally managed investments. The Trustees decision on whether to hold an investment directly or through a fund manager is based on an assessment of the capabilities, performance and costs in order to achieve the best outcome for members.

Socially Responsible Investing

Decisions on investing CBH Super’s assets are made with a view to maximising returns for members given an acceptable level of risk. The Trustee considers a number of factors when making investment decisions. The Trustee does not solely consider social, environmental (including climate change) or ethical factors or labour standards (ESG factors) when making these decisions, nor does it require its appointed investment managers to do so. However there may be cases where the Board or an investment manager believes ESG factors would materially impact the performance of an individual investment. In these cases, ESG factors would be one of the considerations when deciding to invest in or realise investments.

Proxy Voting

The Trustee has adopted the Australian Council of Superannuation Investors (ACSI) Governance Guidelines as a guide on how to vote proxies for its directly held Australian shares. The Trustee has appointed a proxy adviser (Ownership Matters) to provide voting recommendations to the Fund based on the Ownership Matters Guidelines which are consistent with the ACSI Guidelines. The Trustee retains the ultimate responsibility for lodging its proxies and may vote different to the adviser’s recommendation and ACSI Guidelines where it deems appropriate.

Investment Policy & Strategy

The main features of the Trustee’s investment policy and strategy are set out below.

  • In making decisions on investment strategy, the Trustee will have regard to the overall circumstances of the Fund and will comply with all applicable legislative requirements.
  • The Trustee will assess whether the risk and return profile of each investment is consistent with the Fund’s investment strategy.
  • The Fund’s investments will be managed with a view to ensuring the Fund will have sufficient liquidity to meet cashflow requirements.
  • The primary goal of any investment is to obtain the maximum return to the Fund given a level of risk commensurate with risk management and liquidity requirements.
  • The Trustee will seek to minimise investment risk by appropriate diversification of its portfolio.
  • Negative investment returns over the short term are acceptable in order to gain long-term positive returns.
  • The Trustee will have a long-term focus based upon the asset allocation benchmark ranges set out in this document.
  • The Trustee may identify and implement asset class tilts within the ranges where risk-adjusted returns are expected to enhance member benefits.
  • The Trustee will consider the cost and tax implications when selecting investments.
  • All assets and directly held securities will be notified to members in the Fund’s annual report.