Message from the CEO We are living in a time of significant change and transformation of the superannuation sector. Due to regulatory change, we have to look beyond the investment opportunities and default system in order to survive and thrive. Increasing make decisions quickly when awareness and engagement from people and the ability to required. As we move past the choose, has meant that funds are compelled to compete in crisis, we have access to good order to attract members and keep them. The 8.6% increase in opportunities and we have money participating employers is a sign of the recognition that Cbus to invest. We are recognised for our delivers good results for members and we aim to continue that work in this area by ratings agency growth through our field staff and the dedicated Growth Team. Lonsec and a4re the highest rated We are a long-standing supporter of measures to remove fund of any industry fund. underperforming funds from all parts of the super system. Our responsible investment strategy continues to strengthen. No worker should be locked into funds that are unable to At Cbus we have a significant number of members who provide the best retirement outcome for them and we will be impacted throughtheirwork or the communities are seeking to attract members out of funds that fail the they live in as the world transitions to a lower carbon future. performance test. Strong long-term net returns place So the question for us is not why we should do this, but why not? Cbus in an excellent position to be the destination fund We are not acting out of some misguided or ideological agenda, for working men and women of Australia. as has been suggested. We are simply doing what is in the SuperRatings has rated us as the third highest performing long-term interests of our members and for a more sustainable fund over ten years . Our outreach and service to members3 economy. We believe that climate change represents a financial is second to none and we are dedicated to defending our risk and we would not beactingin members’ interests if we members interests through our policy and advocacy work-all ignored climate change – the science of which is not in dispute. of which were recognised through our securing the Chant We can’t decouple ourselves from the real-world economy West award for Best Fund Integrity and Best Specialist Fund. and the impacts and outcomes where our members’ money The board has set an objective of more than doubling the is invested and where they live, work and retire. As long-term Fund’s size in funds under management over the next five investors we are inherently reliant on a sustainable global years. Our objective is to reach $150 billion funds under economy to generate their returns. management in five years. This will be done through mergers We have a young member base and they will be retiring when with like-minded funds, expanding beyond building and climate change physical impacts are accelerating, with potential construction while continuing to attract new members impacts for investments. We’ve surveyed our members on in our existing industries. We have scale and we plan to responsible investment issues and the strong majority want build on it, we’ve got the knowledge and we plan to do their Fund to be investing in a responsible manner. They want more in the merger space and engagement with funds decent work, climate change, labour issues to be taken into interested in merging with us is one of our priorities. consideration when delivering their retirement savings. I’ve seen industry consolidation in financial services before Cbus is in a strong and enviable position to withstand the and the benefit for Cbus in this environment is that we can changes wrought upon our sector. In the medium term we offer specialisation and tailoring to occupational groups. will preserve and enhance what we have and in the long term Our stakeholders are happy that we are on that journey we aim to expand our networks to become a major player in because they understand the importance of scale in the international investment markets as well as the Australian continuing to provide our members with good retirement one. The focus on long-term net returns and giving ordinary benefits. We are adapting by restructuring and adopting working people access to the magic of compound interest new programs of work to ensure that we are a fundthatis is nothing short of transformative. a stable and agile destination for future members. To this end, we have prioritised resources dedicated to growth and we are introducing new products (insurance and investment options) to better prepare us for mergers. I took the helm at an interesting time in 2020: volatile markets and an early release scheme amidst a global pandemic. But last year really showed how the Cbus Investments Team Justin Arter built through our internalisation strategy was able to review CEO Annual Integrated Report 2021 15