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Virgin Money's record performance and what it means for your super

Virgin Money Super is proud to be one of the top performing super funds delivering great outcomes for our customers.

Best performing super fund

The Virgin Money Super LifeStage Tracker® (born 1979 to 1983) investment option achieved the top return out of all Australian default super funds over three years to May 20211.

And we’re happy to say that most Virgin Money Super LifeStage Tracker® customers enjoyed impressive double-digit returns for the financial year – from 19.3% to 22.2% - well above the default option median of 17.9%2.

So what drove the strong June performance?

Strong performance from listed share markets on the back of a robust global economic recovery, combined with our investment approach, has helped deliver solid investment returns.

Not to mention the Virgin Money Super team of investment experts, working continuously behind the scenes to help grow customers superannuation whilst protecting it from the extremes of investment markets.

Global growth is set to strengthen as economies continue to re-open while governments and central banks remain committed to supporting jobs and economic activity.

The increased momentum of global vaccine programs, with the United Kingdom vaccine rate currently over 60% and US and Europe following closely at over 50%3, is helping to ensure the global economic outlook remains positive.

As a result, global share markets continue to perform well, with Hedged Overseas Shares returning a healthy 7.5% for the June quarter. The Australian share market did even better with the S&P/ASX300 returning 8.5% - hitting an all-time high along the way. For 12 months to 30 June 2021, overseas shares (hedged) returned 35.7% and Australian Shares 28.5%. This was a key driver of the very high returns Virgin Money Super experienced for the financial year – our best on record.

The unemployment rate is a key indicator of economic performance and is often used to determine the heath of an economy. Australia’s unemployment rate dropped to 4.9% in June 2021, part time jobs decreased by 22,500 and full time jobs jumped 51,600, another sign that the Australian economy is recovering well.

The Reserve Bank of Australia has held the cash rate at 0.10%, helping keep interest rates low to further support the economic recovery.

Looking forward

Whilst the economic outlook looks positive, the new Delta variant of the coronavirus and the ever-changing landscape will continue to challenge the economic momentum into the second half of the year. Despite this, Virgin Money Super remains confident in navigating through these market fluctuations and safeguarding our customers’ super.


Check out Virgin Money Super’s performance for yourself. For more information on your individual investment strategy or to see how your super is performing, login to your online account.

 

1.       SelectingSuper Workplace Super, May 2021 - Default Options

2.       SuperRatings Fund Crediting Rate Survey June 2021 - Default Options

3.       Bloomberg vaccine tracker, August 2021

 

Important information

This information is of a general nature only and does not take into account your personal financial situation, needs or objectives. Please consider your own personal financial circumstances and consider the Product Disclosure StatementProduct GuideInsurance Guide and Financial Services Guide before taking any action in relation to your superannuation, making a contribution, or asking your employer to contribute to Virgin Money Super for you. You should consider the suitability of superannuation and Virgin Money Super’s Product Disclosure Statement before making a decision on your superannuation investments, making a contribution, or asking your employer to contribute to Virgin Money Super for you. For further information about the insurance options refer to the Insurance Guide.

The Superannuation Fees described on the Fees page apply from 12 December 2016. Here you’ll find the official SIS Act definitions for each fee type.

While there are no contribution, withdrawal or switching fees, a buy/sell spread applies at a fund level when purchasing and selling units. Other fees and costs may apply such as insurance fees. These are retained by the fund and are not paid to Virgin Money or the Trustee. All fees are inclusive of Goods and Services Tax (GST) and net of Reduced Input Tax Credits (RITC).

Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees. You should consider the relevant Product Disclosure Statement. Please note this information does not constitute personal financial product advice, and you may wish to consult your financial adviser before making a decision about whether Virgin Money Super fits your objectives, financial situation and needs. If you are considering making voluntary contributions into your Virgin Money Super account, you should consider your personal circumstances, the impact of such contributions to your contribution caps, as well as associated taxation issues before making any decision on making voluntary contributions. Concessional tax rates do not apply on contributions which exceed government contribution limits. See the ‘How Super is Taxed’ section of the Virgin Money Super Product Guide and the contribution fact sheet on our website for more information about contribution types and limits.

Please refer to the Product Guide and MySuper Product Dashboard for further information.

It is very important to note that superannuation is generally a long term investment. Past investment performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund.

Prepared by Virgin Money Financial Services Pty Ltd ABN 51 113 285 395 AFSL 286869 (‘Virgin Money’). Virgin Money Super is a plan in the Mercer Super Trust ABN 19 905 422 981. Virgin Money Super is issued by Mercer Superannuation (Australia) Limited (MSAL) ABN 79 004 717 533 AFSL 235906 as trustee of the Mercer Super Trust. For more information about Virgin Money Super, please refer to the PDS which is available free of charge on our website or by calling the Customer Care team on 1300 652 770.