A. MTAA Super uses a unit pricing method to value your account balance Your account balance and transaction details are expressed in both units and dollars.
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. 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.
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.
Q. How are units applied to my account?
A. Each time you invest in an investment option (e.g. by making contributions), you buy units The number of units you will receive is the dollar value of the contribution divided by the relevant buy price.
Each time you reduce your investment in an option (e.g. by making a withdrawal) you sell units at the sell price.
Q. Does MTAA Super apply a Buy-Sell spread?
A. No. MTAA Super removed buy-sell spreads on 16 November 2020. This means that the daily unit price applied for an investment option is the same whether you invest in the option (e.g. by making contributions) by buying units or you reduce your investment in an option (e.g. by making a withdrawal) by selling units.
Q. Are there different unit prices for super and pension accounts?
A. Yes. Unit prices vary between the same investment options for accumulation and pension accounts. This is due to a number of reasons. 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. In addition the units on issue and price will vary depending upon the total monies invested in the option.
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. Where can I find the daily unit price for each investment option?
A. MTAA Super issues unit prices on every national business day. A national business day is any day that is not a weekend or NSW public holiday.
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. Can I switch options daily?
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.