Mercy Super uses unit prices to value its investments and allocate this value to member accounts. Unit pricing is considered to be ‘best practice’ within the super industry because of the level of transparency provided.
When you invest in one of Mercy Super’s investment options, your money is placed into a pool of investments with other members who have also chosen that option.
Investment options in the Fund are divided into a number of units. You are allocated a certain number of units to reflect your share in that option.
The unit price is determined by dividing the net value of the underlying assets (after an allowance for tax and fees) in an investment option by the total number of units issued for that option.
The number of units you hold, multiplied by the unit price, represents the value of your investment in that option.
Mercy Super calculates unit prices for its investment options daily*. There are different unit prices for each of the Fund’s investment options. There are also different unit prices for the Super and Income Account options because of the different tax allowances that apply to these options.
Unit prices are determined based on the most recently available valuation for assets in the Fund’s investment options at the close of business each day, less a provision for tax and fund expenses.
Unit prices will move up and down daily as the value of the underlying assets of investment options change.
The value of your investment in each option changes as the investment option’s unit price moves up or down.
* Mercy Super reserves the right to declare unit prices more or less frequently, as well as delay or suspend the calculation of prices or processing of transactions in abnormal circumstances. This may be when the information to calculate unit prices is not available or an extraordinary event has occurred, such as a major market fluctuation, which may have a significant impact on the Fund.
When you add money to your account, such as a contribution or rollover, you are allocated additional units, based on the unit price.
Marie makes a contribution for June 2015 of $1,500
The unit price is $1.085007
The number of units allocated to Marie is:
$1,500 ÷ $1.085007 = 1,382.48 units
If a withdrawal or deduction is made from your account, such as a benefit payment or insurance premium/contributions tax deduction, units will be redeemed.
Marie makes a withdrawal of $1,500 in August 2015
The unit price is $1.065121
The number of units redeemed from Marie’s account is:
$1,500 ÷ $1.065121 = 1,408.29 units
If you switch investment options the transaction is processed:
You redeem units from your current investment option and are allocated additional units in your new, chosen option.
Unit prices are updated daily. This means that each day, you will be able to receive up-to-date information about your account balance. Your account balance and any transactions will be shown in both units and dollars. You will be able to see unit prices and your balance using Member Online.
If you want to check the number of units you hold in each of Mercy Super’s investment options and the total value of your account, you can log on to Member Online.
You can also contact us for further information.