1. FAQs for Unit Pricing

Unit Pricing FAQs

Q.  What’s changed?

A.  MTAA Super previously used a crediting rate method to apply investment returns and calculate your account balance.  On 22 April 2017,  MTAA Super changed to a unit pricing method. Your account balance and transaction details are expressed in both units and dollars.

Q. Why did these changes happen?

A. Unit pricing is generally considered to be ‘best practice’ in the financial services industry. It provides enhanced transparency, clarity and fairness when calculating your account balance.  The change allows you to view more up to date information about the value of your investment.  It also means you can switch investment options on a daily basis. 

Q. What is a unit?

A. When you invest in any MTAA Super investment option, your money is placed in a pool of assets, along with every other member that has chosen that investment option. 

Each investment option is divided into units and every unit you own in that investment pool represents your share of that investment option. 

The initial units allocated to you were determined by your account balance divided by the unit price for the investment option/s that you were invested in as at 22 April 2017. 

For example: On 22 April 2017 the initial unit price for each investment option was $1.00. If your superannuation account balance was $100,000, you would have been allocated 100,000 units.

Q. What is a unit price?

A. A unit price represents the value of each unit in an investment option.  The unit price for each investment option is calculated by dividing the value of the assets in the option (after allowing for fees, costs (including fees paid to investment managers) and taxes) by the number of units on issue. As the value of these assets and liabilities can go up or down, the unit prices for the different investment options can go up or down.

The buy-sell spread is applied to the unit price to obtain the buy price and the sell price. The difference between the investment option buy and sell prices is the total buy-sell spread for that option.

Q. What is a Buy-Sell spread?

A. A buy-sell spread represents the estimated transaction costs incurred when buying or selling underlying assets in relation to investment options. The spread is applied to ensure that all transaction costs incurred in buying or selling assets are fairly allocated to those members who transact in an investment option. The buy-sell spread is retained in the Fund and is not a fee paid to the Trustee.
 
Q. When does a buy-sell price apply?
 
A. Each time you invest in an investment option (e.g. by making contributions), you buy units and each time you reduce your investment in an option (e.g. by making a withdrawal) you sell units.

The table below shows the type of unit price associated with common transactions. 

Q. Are there different unit prices for super and pension accounts?

A. Yes. Unit prices will vary between the same investment options for accumulation and pension accounts. This is because the earnings on assets within super and Transition to Retirement (TTR) accounts are subject to tax and other expenses, whereas they are tax free within pension accounts.

Q. Where can I find the daily unit price for each investment option?

A. MTAA Super will issue unit prices on every national business day. A national business day is any day that is not a weekend or NSW public holiday.

Go here to see daily Superannuation/Transition to Retirement Unit Prices
Go here to see daily Pension Unit Prices

Q. Where can I check how many units I have?

A. Login to Member SuperSite (or ePension) at any time to check your account balance, how many units you hold and the latest unit prices. Alternatively, you can call the Customer Service Centre on 1300 362 415 and we can help.

Q. Is there a change to the switching process?

A. Yes. Members can now switch daily instead of weekly.

Switching applications for your existing account balance will be effective two business days after the request is received using the most recent price/s available. A business day is any work day other than a NSW public holiday or weekend. For example, switching applications received on a Friday, Saturday or Sunday, prior to 11:59pm will be effective on Tuesday. Switching applications received on a Monday prior to 11:59pm will be effective on Wednesday.

Q. What happens if I use my existing MTAA Super accumulation account to set up an MTAA Super pension account?
 
A. Your new MTAA Super pension account will commence with the same investment option/s held in your existing MTAA Super accumulation account. If you elect to change your investment option/s, your pension account will initially be invested in the same investment option/s that were held in your accumulation account and in the same proportions. An investment switch will then be processed two business days after your pension commences. The buy-sell spread will only be incurred if you elect to change your investment options.  
 
Q. Are there any changes to Member SuperSite or e-Pension?
 
A. Yes. Your account balance and transactions are displayed in units as well as dollars.

A new page has been introduced under the ‘Investment’ menu, titled “Unit Prices”.  This page is a graphical representation of the movement in unit prices from a nominated period. The graph includes the buy and sell prices. 

Q. Where can I find more information?

A. For more information about unit pricing refer to the Understanding Unit Pricing Fact Sheet