• What is unit pricing?

  • Each investment option is divided into units. When you go into an option (e.g. by making contributions), you buy units and when you leave an option (e.g. by making a withdrawal) you sell units. The value of your investment in a particular option is the number of units you hold in that option multiplied by the unit price of the option.

    The unit price of each option reflects the valuation of the underlying assets and liabilities in that option. Because the value of these assets and liabilities can go up or down, the unit prices for the different investment options can go up or down.

    Rather than crediting an average return once a year, the Trustee includes all investment returns, whether positive or negative, in the unit prices which are normally set once a week. Each member receives returns that are as close as possible to what their investment actually earned.

  • How unit prices are calculated

    The unit prices for each investment option are calculated by dividing the value of the net assets in the option by the number of units on issue, after allowing for fees (including fees paid to investment managers) and taxes.

    The Fund does not charge a buy-sell spread.

  • How unit pricing applies to your account balance

    For all transactions, the number of units allocated or redeemed is the dollar value of the transaction divided by the unit price of the relevant investment option.

    Your account balance is equal to the number of units you hold in each investment option multiplied by the relevant unit price for the option.

  • How unit pricing applies to investment switches

    You can change your investment option/s at any time.

    Investment switches are processed on a forward pricing basis. This means that your switch will be processed at unit prices that are set after your switch application is received. Unit prices are normally set on a Tuesday. To receive the unit price set on a particular Tuesday, your application must be received by close of business (5:30 pm AEST or ADST) on the previous Friday.

    Your balance in the option/s you are exiting is calculated using the sell unit price/s and is then reinvested in the new option/s with the number of units calculated using the buy unit price of your new option/s.

  • How unit pricing applies to investment returns

    Member account values are based on weekly transaction unit prices and the timing of contributions, withdrawals and fees. These unit prices are usually declared each Tuesday and account for the value of trade, through the Friday prior. Your return is calculated week-to-week using these unit prices.

    These returns only apply if you were invested in the relevant option for the whole period and you did not make any changes to your account. If this does not apply, your effective return could be different. For example, a member who made a large contribution when the unit price was low is likely to have a higher effective return than a member who made the same contribution while the unit price was high.

    Fund return compared to a member return

    When we post our annual return in each investment option, we use the opening 1 July and closing 30 June unit price after all valuations from investments are received.

    End of financial year unit price

    We have an additional unit price on 30 June each year. The reason we have an additional price is to ensure we value your account at the end of each financial year using the most recent market valuations.

  • What happens if unit prices prejudice members' interests?

    The Trustee may take action if unit prices could prejudice members’ interests by:

    • Changing any unit price where that unit price would prejudice the interests of members in that investment option (e.g.;if the unit price no longer fairly reflects the value of the underlying assets)

    • ‘Freezing’ transaction processing in the event of a greater than +/- 5% daily cumulative movement in the value of any investment option, until an appropriate revised unit price can be determined.
  • Unit pricing errors

    Although the Trustee has established rigorous procedures to minimise the risk of unit pricing errors, it is possible that an error could occur, for example if valuation information received from an investment manager is incorrect.

    The Trustee has adopted procedures that will be followed in the event of a unit pricing error. For example, current members who have been materially disadvantaged would have extra units added to their account balance to compensate them for any loss.