How your super is invested.
Investing that tracks the index
In terms of the bigger picture on super investing, there are two key strategies that funds employ – index tracking and active management. Our investment options use index tracking.
How it works is that we invest in a percentage of stocks on a particular index to replicate the performance of that index – so instead of trying to outperform the market like active managers, our options track (or follow) the market instead.
This strategy has a proven long-term performance history in all the major asset classes. In fact, few active managers have been able to sustain above-benchmark returns after costs over the long term.
The other cost benefit with indexing is that because we’re not paying the wages for active fund managers, our costs are significantly reduced and you pay less fees.
Our LifeStage Tracker® investment options provide long-term stability by adjusting your exposure to risk at four key life stages – under 40, 40s, 50s, over 60s. A balanced and aggressive mix is available.
- Our balanced mix is for people who want mid to long-term growth while maintaining risk at a moderate level. It comprises an investment mix that targets moderate returns – Cash/Fixed Interest, Listed Property, Australian and International Shares.
- Our aggressive mix is for people who don’t mind taking on more risk for the potential of higher returns. It comprises an investment mix that targets higher growth – a greater proportion of assets like Australian and International Shares, and Listed Property.
Select Your Own
For people who prefer more control we have Select Your Own, which allows members to invest in one or all of our asset-specific portfolios. Each portfolio has a different level of risk and return, so you can choose where you want your money invested depending on your risk profile.
To see the investment option you are currently in, log in to your account at virginmoney.com.au, call us on 1300 652 770 or read your 2009/2010 Virgin Super Annual Statement.
Your risk profile.
Your risk profile is a personal choice, but you could look at it in terms of age or life stage.
- At one end of the spectrum are workers nearing retirement with not much time left in the investment market. For these people risk is potentially tricky in that any losses incurred could be harder to recoup over a shorter timeframe.
- At the other end are the young ones with many years of work left in them. For these people risk could be less of an issue, as they’ve got more time to recover from sharemarket fluctuations.
For more information about risk, read the current Virgin Super PDS.