Core Super changes to unitisation
From 1 December 2011, the method for valuing investment options
in our members' Core Super accounts will change from a crediting
rate to unit pricing. This will not affect your benefit with
Intrust Super, but will mean that your account balance and
transaction details will be expressed as units as well as dollars.
Unit pricing already applies to our other products (i.e. Executive
Super, Select Super and Super Stream), and is now regarded as best
practice across the superannuation industry.
Currently, Core Super members must wait until the end of each
financial year for their financial investment returns to be
calculated. Under the unit pricing method, units will be priced
each week, which will allow us to provide members with more
up-to-date information about their account balances.
What is unitisation?
When you invest in any of the Core Super investment options,
your money is placed in a pool of investments along with the money
from all the other members who have chosen that investment
option.
From the date of change, each investment option is divided into
units, and every unit you own in that investment pool represents
your share of that investment option.
Each unit has a 'price' that is determined based on the
valuation of the assets in the investment option less an allowance
for tax and fees, divided by the number of units on issue for that
investment option. Unit prices can move up and down as the value of
the assets or the allowance for tax and fees in the investment
option change.
Generally, units will be priced each week and will be available
to view on our website.
Converting to unitisation
On 1 December 2011, your account balance will be divided
by a commencing unit price for the investment options
that you currently invest in.
For example, if your account balance on 1 December is $30,000
and the commencing unit price is $1, your account balance of
$30,000 will be divided by $1 per unit, which equals
30,000 units.
Contributions and withdrawals
From 1 December, when a contribution is made to your account,
units will also be allocated. The number of units will be
determined by dividing the contribution amount by the relevant unit
price.
For example, if your employer contributes $1,100 and the unit
price is $1.10, 1,000 units will be allocated to
your account ($1,100/$1.10 = 1,000).
When a benefit payment or withdrawal (e.g. fees, tax or
insurance) is withdrawn from your account, units will be sold using
the relevant unit price.
For example, if you withdraw $1,100 and the unit price is $1.02,
1078.4 units will be sold ($1,100/$1.02 =
1078.4).
Switching between investment options
When a member requests to switch between investment options, the
transaction is processed similarly to that of a withdrawal or a
contribution, except that the switch transaction will be processed
the following week using that week's unit prices to avoid any
arbitrage opportunity arising.
How can I check the value of my account?
You can check the value of your account at any time by logging
in to MemberAccess at www.intrust.com.au. You will
be able to see the number of units you hold in each investment
option, the current price per unit and the total value of your
investment in dollar terms.
You can also call us on 132 467 and we can help you calculate
your account balance.
More information
If you have any questions about the change to unitisation,
please call us on 132 467.
Read more Intrust Super News here.