From 1 July 2010 your super balance will be calculated using a daily unit price rather than a weekly crediting rate.
> The introduction of unit pricing will not affect your entitlements with AUSCOAL Super.
> You will still see your account balance and any investment earnings in dollars and cents.
> Unit prices will be calculated daily but members will still see weekly investment option returns.
> To help you understand how unitisation will work and what it will mean for members, read the information below or our significant event notice.
Unit pricing is simpler
Using a unit price to calculate the value of your account is similar to the way you calculate the value of stocks on the stock market. Previously, your super account balance was calculated using a weekly crediting rate. This meant your account balance during the week was calculated using an interim crediting rate and could differ from your actual account value until the weekly crediting rate was set at the end of each week.
As unit pricing allows you to see an up to date account balance at any time, keeping track of your super or pension is easier.
How does unit pricing work?
On 1 July 2010 all unit prices will be set at $1.00
Your account balance will be converted to units, but the value of your AUSCOAL Super account won’t change.
On 30 June 2010 Alice has $65,000 in her AUSCOAL Super Account. On 1 July Alice’s account balance will be converted to 65,000 units valued at $1.00 each.
When investment earnings are positive the unit price will increase
Over the next few weeks the market performs well, gaining 3%. Now each unit is worth $1.03. This means when Alice checks her account balance it is worth $66,950 (65,000 units x $1.03).
When investment earnings are negative the unit price will fall
Following the rise the market experiences a slight fall and the unit price drops to $1.02. Alice’s account balance is now worth $66,300 (65,000 units x $1.02).
When you put money into your super account you are buying additional units
Alison makes regular contributions to her AUSCOAL Super account and deposits $100. As each unit price is worth $1.02, Alison’s contribution buys her 98 units. Alison’s account balance is now worth $66,399.96 (65,098 units x $1.02).
When you take money out of your super account you are selling units
Alison pays regular insurance premiums of $20 from her AUSCOAL Super account. When Alison’s insurance premium is deducted she sells 19.6 units and her account balance is now worth $66,379.96 (65,078.4 units x $1.02).
Each investment option has its own unit price
George was invested in a different investment option to Alison. George also started with 65,000 units on 1 July 2010, however his investment option experienced higher investment earnings and each unit is now worth $1.04. This means George’s account balance is worth $67,600 (65,000 units x $1.04).
Keeping track of your investments
Our latest investment performance is always available on our website www.auscoalsuper.com.au. If you want to check your super balance you can view your account by signing in to our secure website. A member statement will also be sent to you twice a year showing how your investment options have performed.
For more information
If you would like more information about unit pricing and how it affects your AUSCOAL Super account, please read our Significant Event Notice or call us on toll free 1300 AUSCOAL (1300 287 262).
