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Virgin Super delivers above-average one-year returns

Virgin Super delivers above-average one-year returns

09 Oct, 2019 - 3 min read

Where you invest your superannuation is a big decision, one that could have a significant impact on your retirement nest egg.

The difference between choosing a high-performing fund and a low-performing fund could add up to tens of thousands of dollars over the course of your career.

Oliver* recently switched his superannuation to Virgin Money Super, because he was already banking with Virgin Money and he was impressed with how their different superannuation investment options had recently performed.

Here’s how Virgin Money Super’s different investment options performed over the year to 31 July 2019, compared to industry funds and retail funds, according to data published by Virgin Money:

Investment option	Industry fund median	Retail fund median	Virgin Money Super
Indexed Australian Shares	9.94%	10.02%	13.20%
Australian Listed Property	7.04%	15.67%	18.84%
Cash Option	1.86%	1.31%	2.04%
Indexed Diversified Shares	7.69%	7.40%	10.32%
Indexed International Shares	7.04%	7.82%	11.02%
Enhanced Indexed Growth	7.31%	6.73%	9.34%
Enhanced Indexed Conservative Growth	5.75%	5.33%	7.95%

Past performance is no guarantee of future performance

Past performance is no guarantee of future performance. So while Virgin Money Super outperformed the industry fund median and retail fund median over the year to July, it doesn’t guarantee that Virgin Money will do so in the future.

Also, superannuation is a long-term investment that can be quite volatile, so it’s often a good idea to compare super funds over, say, five years or longer.

Oliver wasn’t able to do that with Virgin Money Super, because its investment history goes back to December 2016. However, he did find the following data published by Virgin Money:

Investment option	Inception	Growth
Indexed Australian Shares	1 December 2016	12.86%
Australian Listed Property	1 December 2016	12.57%
Cash Option	1 December 2016	1.88%
Indexed Diversified Shares	16 December 2016	11.11%
Indexed International Shares	1 December 2016	13.61%
Enhanced Indexed Growth	22 December 2016	8.86%
Enhanced Indexed Conservative Growth	23 December 2016	5.89%

How to switch super funds

Oliver found it a simple process to rollover (i.e. switch) his superannuation from his previous fund to Virgin Money Super.

Oliver completed the rollover process online, by providing this information:

Contact details
Tax file number
Membership details of his previous fund

By joining Virgin Money Super, Oliver became eligible to earn Velocity frequent flyer points.

Virgin Money gives members 1 Velocity point for every $5 of net super contributions they make during a points earn period (which lasts three months), up to a maximum of 250,000 points during any financial year. (Other conditions also apply.)

Oliver transferred $50,000, which meant he immediately earned 10,000 Velocity points.

* Oliver is not a real person. This is a hypothetical case study.

Disclaimer

This article is over two years old, last updated on October 9, 2019. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent superannuation articles.

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Product database updated 18 Nov, 2024

This article was reviewed by Product Director Liron Nehmadi before it was published as part of RateCity's Fact Check process.

Nick Bendel

Property & Personal Finance Writer

A property and personal finance writer, Nick Bendel covered property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.