The returns you earn on your super may be positive or negative depending on the performance of your chosen investment option.
Calculating returns on your account
Investment returns, either positive or negative, are applied to your account as ‘crediting rates’:
- at 30 June
- when you withdraw or transfer out of the Fund
- when you switch between investment options
- when you buy or sell shares or ETFs, or your term deposit matures, in the Member Direct investment option.
Crediting rates are compounded daily, so it is likely that you will have a different balance on your account every day. This is because every transaction on your account (including insurance premiums and administration fees which are deducted monthly, and contributions that may occur at any time) creates a new daily balance on which crediting rates are applied. Crediting rates also change daily.
Calculating returns on investment switches
If you switch investment options, the daily crediting rates are used to determine the switch amount (for example: if you request 50% of your account balance to move to a different investment option, your total balance will include the investment return up to the date of the switch, which may be positive or negative).
The daily crediting rates are based on the actual daily investment returns. These rates are calculated on a daily compounding basis to determine the exact return that is applied to your account.
Following the switch, investment returns will be applied to your account using the daily crediting rates for your new investment selection.
Example
- A switch request is made on Thursday 14 February to switch from 100% Balanced to 50% Balanced and 50% Cash.
- To process the switch, your current account balance is calculated at the close of business Monday 18 February using the daily crediting rates for the Balanced option.
- After your total account balance is worked out, 50% is invested in Balanced and 50% in Cash.
- The switch will show on your online account from Wednesday 20 February.
Calculating returns on withdrawals and contributions
Full withdrawal or rollovers
If you make a full withdrawal or rollover from your account, the last available crediting rates are used together with zero rates for the day of calculation and the preceding business day to establish you final account balance. (Please note: daily rates for Saturday, Sunday and national public holidays are set at zero).
Partial withdrawals
If you make a partial withdrawal, the amount is simply deducted from your account. Returns are calculated on your remaining account in the usual way using the actual daily crediting rates.
Contributions and roll-ins
If contributions and transfers from other funds (roll-ins) are credited to your account, you will receive a return using the daily crediting rates from the date of receipt.
Member Direct investment option
If you’re invested in the Member Direct investment option, you can log in to the online platform to view the performance of your portfolio and individual shares, ETFs and term deposits. Find out more about the Member Direct investment option.