Investment Objective

CBIC’s objective is to grow its existing assets under management to a $500m+ portfolio, in order to help fund Brisbane’s future amenity needs, underpinned by a commitment to Responsible Investing Principles.

CBIC must be mindful of prudent, responsible and reasonable levels of risk for the assets under management. In managing investment risk the Board will:

  • predominantly invest in property or property related assets with the balance to be kept in cash and, if considered appropriate, fixed interest,
  • adopt a prudent, responsible and reasonable risk profile,
  • aim over the longer term for an appropriate diversification within the property asset sector,
  • carefully select and monitor investment managers and advisers. This will include communicating with and the interviewing of a range of experts in the investment and wealth creation community. Such experts will include senior managers of investment houses, economists, leaders in the business community particularly in the finance and investment sectors, and
  • regularly oversee investment performance, investment policy and strategy.

Benchmarks

The portfolio’s targeted return over the long-term is CPI plus 3.5% to 4.5% with CPI being set as rolling CPI (the Brisbane average over the last three years). Long-term is seen as 7 years.

The individual asset class portfolios are measured against the following indices:

Asset Class
Benchmark Index
Cash Investments
Bloomberg AusBond Bank Bill Index over a rolling 1-year period
Domestic Bonds
Bloomberg AusBond Composite Index
Domestic Properties
MSCI/Mercer Core Wholesale Index (pre fees)

Our purpose is to acquire, dispose of and reasonably invest in assets to enhance the ability to The Shareholder to deliver services and other benefits to the citizens of Brisbane.

In pursuit of this objective we maintain a diverse and efficient mix of assets as per our Investment Policy, managing a portfolio focused on Australian property assets. Our property portfolio is managed by an in-house team of property professionals, and CBIC retains broad advice on its other asset classes.