Investing that tracks the index
In terms of the bigger picture on superannuation investing, there are two key strategies that funds use – index tracking and active fund management. Our investment options use index tracking.
Index tracking is designed to mirror the performance of a share or bond index by investing in a percentage of stocks or bonds on a particular index to closely 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 history of long-term performance in all the major asset classes. This is because few active managers have been able to consistently sustain above-benchmark returns after costs over the long term.
Tracking the index has another cost benefit – because the typical index fund is not actively managed, we’re not paying the wages of active fund managers, our costs are lower than average management costs for actively managed funds, which means you are more likely to pay less fees.
Our LifeStage Tracker® investment options provide the potential for long-term stability by adjusting your exposure to risk at four key life stages – under 40s, 40s, 50s, over 60s+. And the great thing is that you can choose what level of risk you’re comfortable with.
Select Your Own
For people who like to have a bit more control, Select Your Own allows members to invest in one or all of the available asset classes. Each asset class 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, login to your account at virginmoney.com.au, call us on 1300 652 770 or read your 2011/2012 Virgin Super Annual Statement. Your 2011/2012 Virgin Super Annual Statement shows your investment option as at 30 June 2012, so if you have made any changes since then go to the website or call us.
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 share market fluctuations.
For more information about risk, read the current Virgin Super PDS.