Unit pricing explained

Valuation of assets
The Trustee has adopted a Valuation Policy that determines how different types of assets are valued. An independent custodian values the Fund’s assets on a regular basis (typically weekly) and, based on this valuation, determines unit prices for each option.

As assets can rise or fall in value, unit prices can also rise or fall.

How are unit prices determined?
The unit prices for each investment option are derived by dividing the value for the assets in each investment option by the number of units on issue for that investment option after allowing for fees, taxes and buy/sell spreads. Specific expense items included are:

• custodian fees
• investment consultancy fees and
• investment management fees.

Buy and sell unit prices are determined for each investment option.

The difference between the buy and sell unit prices (the buy/sell spread) will reflect the cost of buying and selling the underlying assets of each investment option. The buy/sell spread is variable and may change in line with movements in the actual transaction costs incurred by the Fund. (Refer to Investment switching for the buy/sell spread for each investment option.)

The calculation of ACSRF’s unit prices includes a provision to be held to cover estimated amounts for future tax payable or future tax assets. The Trustee has established a policy in relation to the way in which these tax amounts will be estimated and included in unit prices. As part of the policy, the Trustee has also determined that it may be appropriate, in some circumstances, to cap the maximum amount of any future tax asset to be included in unit prices. The aim of the policy is to assist in achieving equitable unit pricing outcomes for members.

The Trustee reserves the right to change any unit price where that unit price would prejudice the interests of members in that investment option.

The Trustee also reserves the right to ‘freeze’ 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.

Valuation of member balances
Member account balances are expressed as a number of units in each investment option as well as in dollars. The current value of a member’s account balance can be calculated by multiplying the number of units held by the latest sell unit price available for that investment option.

Your investment return will be specific to the investment option chosen and influenced by the timing of your entry into the investment option.

Allocation and redemption of units
All incoming monies such as contributions are processed at the buy unit prices of each investment option. Units are allocated to members’ accounts by dividing the dollar value of the transaction by the buy unit price applicable at the date of receipt of monies.

All member specific expenses such as administration fees, insurance premiums and contributions tax are processed at the sell unit price. Units are redeemed from members’ accounts by dividing the dollar value of the transaction by the sell unit price applicable at the effective date the expenses are deducted, usually at the end of each month.

All full and part withdrawals from the Fund will be processed at the sell unit price of each investment option. Units are redeemed from members’ accounts by multiplying the total number of units held in each investment option by the sell unit price applicable at the date of processing.

You can switch between investment options on a weekly basis. The switch will take effect from the date of the next available unit price after your completed, signed and dated Investment choice form is received at the Fund office. Your balance in the exiting investment option/s is calculated using the sell unit price and is then reinvested in the new investment option/s with the units calculated using the buy unit price.


You should also be aware that a number of investment options contain direct property, infrastructure or private equity, which cannot be quickly converted to cash. (These are called illiquid assets.) With the exception of the Fund’s Diversified Property option, all options contain a majority of assets such as listed shares or bonds that can be quickly sold for cash. (These are called liquid assets). These options, including the Balanced option, contain sufficient liquid assets to ensure that benefit payments, rollovers and investment switches can be processed promptly in all but the most extreme circumstances.

However, in extreme circumstances (such as a very large drop in investment markets), it may not be possible to process all requests for benefit payments, rollovers or investment switches within 30 days. In such cases the Trustee may be forced to freeze these transactions until sufficient assets can be sold. If this happens, the Trustee will notify affected members as soon as is reasonably possible. The Trustee will consult with the regulator APRA to ensure compliance with all legislative and regulatory requirements.

In the 29-year history of the Fund, the Trustee has never yet had to freeze or delay benefit payments, rollovers or investment switches.