Investment
What is unitisation?
Unitisation is a means by which the net assets of MilitarySuper can be attributed to the individual Member of MilitarySuper. It essentially entails MilitarySuper being divided into a number of units, and each Member therefore holding a number of those units at any point in time.
Similar in concept to purchasing shares, when Members contribute to MilitarySuper they will be allocated additional units depending on the size of their contributions, their choice of investment strategies and the unit prices on the day the contributions are processed. On the other hand, when Members receive a benefit from MilitarySuper, they will be effectively 'cashing in' or redeeming their units at the applicable unit prices.
Earnings arising from the investments of the Fund are, in turn, reflected in the daily price of the units.
Determining Unit Prices
Unitisation is a way to equitably attribute a share of the value of invested assets to people who hold investments which are pooled with other assets for investment purposes. Effectively Unitisation is the process by which that pool of assets are broken into portions of ownership (units) which are conceptually similar to holding shares in a company.
To enable people to enter or exit a unitised Fund, the price per unit is determined based on the number of units issued and the net value of Fund investments at the time the unit price is calculated. In MilitarySuper unit prices for each of the five options are calculated on a daily basis. The value of these units fluctuates with changes in asset values and investment returns.
When Members of MilitarySuper first join the Scheme their initial and subsequent contributions are used to purchase units at the prevailing unit price on the day their contributions are received into the Fund. Similarly where the Member exits the Fund, or accesses a partial benefit, they effectively cash in or redeem their accumulated units at the prevailing unit price for their investment option.
Current Issue and Withdrawal Prices for Strategies
Contributions to MilitarySuper lead to the issue of new units at the issue prices for the day the money is received by the Fund. Benefit payments result in the withdrawal of existing units at the withdrawal prices on the day the completed application for payment is received (but this can be no earlier than the day after the applicant ceases to be a Member of MilitarySuper).
The most current issue and withdrawal prices are provided for the information of Members in the following table. If there is a difference between the unit price figures on this site and what is on MilitarySuper's administration system, the figures in the administration system apply.
Daily Unit Prices
As at 10 March 2010
| Strategy | Issue Price | Withdrawal Price | Percentage change since 1 July * |
|---|---|---|---|
| Cash | $1.379144 | $1.379144 | +2.3040% |
| Conservative | $1.383045 | $1.383045 | +0.3225% |
| Balanced | $1.539034 | $1.539034 | +2.4865% |
| Growth | $1.512004 | $1.512004 | +3.3579% |
| High Growth | $1.506625 | $1.506625 | +2.9379% |
* Financial YTD Rate of Return is from 1 July and are net of taxes and fees.
| Strategy | Issue Price | Withdrawal Price | Percentage change YTD |
|---|---|---|---|
| Cash | $1.348084 | $1.348084 | +4.6194% |
| Conservative | $1.378598 | $1.378598 | -3.6246% |
| Balanced | $1.501694 | $1.501694 | -8.9433% |
| Growth | $1.462881 | $1.462881 | -11.6443% |
| High Growth | $1.463625 | $1.463625 | -17.8949% |
Unit Price History
Click on any of the investment choice strategies listed below to view the Unit Price History of that strategy.
Daily Unit Prices are struck for each day of the year on the basis of the market value of listed investments on the previous day's close of trading, and on the basis of the best available valuation data on non-listed investments. Provisions are also made for taxes, fees and expenses on the income derived from those investments on a daily basis.
Non-listed investments by their nature are illiquid and the true value of these investments is determined on the basis of periodic independent valuations or as a result of a sales event.
At the end of a financial year Fund performance is calculated on the basis of hard close data which only becomes available some time after 30 June. Given this timing difference the unit price for each investment option declared for 30 June may vary from the investment performance of that option subsequently determined on the basis of fully audited accounting and taxation information.
How do I add to my Units?
Each fortnight any additional contributions you have made will purchase additional units at the daily unit price for that particular payday.
For example, if your fortnightly contribution is $100.00 and the unit price is $0.98 cents then the number of units you purchase is calculated as:
100 ÷ 0.98 = 102.0408 units
If, however the unit price was $1.03 then the number of units purchased would be:
100 ÷ 1.03 = 97.0874 units
Crediting Rate
Prior to 1 July 2002, the crediting rate was the final rate of interest determined by the MSB Board for a financial year. Please see Crediting Rates for further details.
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