Lonsec recommends Cbus

Cbus Super has welcomed a ‘Recommended’ rating by retail ratings house Lonsec* in a first for an industry superannuation fund.

The rating further progresses Cbus’ FPA Professional Practices referral program pilot which has seen Cbus partnering with the Financial Planning Association for the provision of financial advice to Cbus fund members.

Lonsec has assigned a ‘Recommended’ rating on all Cbus investment options including the Cbus default option – Cbus Growth (Cbus MySuper) where 90% of the funds 700,000 plus members have their money invested.

Cbus CEO David Atkin said that the opening of the fund to a retail ratings process was a strategic move based on the trustee’s conviction about the strength of the fund’s performance, transparency of our processes and a willingness to openly compete against all comers.

“As an initial review process by a retail ratings house, somewhat unfamiliar with the industry fund model, this is an outstanding first up rating for Cbus” said Mr Atkin.

“It is pleasing to note that Lonsec recognises the fund’s strong governance framework, well resourced investment team, competitive pricing and our strong performance track record – with our Growth (Cbus MySuper) returning an average annual net return of 9.1%** over the past 29 years to 30 June 2013.”

“The ‘Recommended’ rating indicates that Lonsec has strong conviction that the financial product can generate risk adjusted returns in line with its objectives.”

“It also provides over 4,000 financial planners and advisers who have access to Lonsec Research another significant point of reference in making recommendations about suitable superannuation products to their clients, providing a further important information piece for our broader distribution and advice strategy.”

“Importantly financial planners and advisers who in the past overlooked or been critical of industry funds now have the opportunity to have their questions answered.”

“Cbus is committed to transparency and this initial rating process demonstrates the strength of the fund and its capacity to compete with all comers on a level playing field,” said Mr Atkin