Active v Index managers

When making decisions about your super, it is important to understand how professional managers choose and manage their investments. Each manager has a different style or approach to investing based on their view of how to maximise returns.

Active managers believe that the broad market can be beaten by picking higher performing securities or asset classes, despite the higher fees involved.

Index (or passive) managers believe that the broad market cannot be consistently beaten. They aim to replicate the performance of a broad market index such as the S&P/ASX 300 for Australian shares. Index management fees are significantly lower than those of active managers.

Enhanced index managers use an index approach but target minor levels of outperformance through low-risk active management echniques.

Only the SSgA investment options are indexed and all other options, including all of the Sunsuper options, are active.