Investment Frequently Asked Questions
Q What is unitisation?A Unitisation means that your account balance will be expressed in units as well as dollars for each investment option you have chosen.
When a deposit or withdrawal is made, units are allocated / redeemed from your account by dividing the dollar value of the transaction by the unit price applicable at the date of transaction.
The current value of your account balance can be calculated by multiplying the number of units held by the latest unit price available for that investment option. Unit prices are calculated weekly and are available on the Catholic Super website.
These unit prices allow for non-member specific fees. Specific fees include investment management fees and custodian fees.
Unit prices include allowances for investment management fees, expenses and taxes as applicable.
Q What companies does Catholic Super invest in?A Catholic Super uses a range of leading Investment Managers who each have a different allocation of investments. This is to ensure there is a diverse mix of investments and managers. These may change over time with regular reviews and monitoring.
Q Can I choose the specific shares I want to invest in?A Yes. Catholic Super offers a self-directed investment option called MyLife MyPortfolio, where members can invest in shares on the Australian Stock Exchange (ASX), Exchange Traded Funds (ETFs) listed on the ASX, and Term Deposits.
Q How do I guarantee not getting a negative return?A All investments involve some level of risk. Only the cash options are managed with the objective of never sustaining a negative return. However none of Catholic Super options are guaranteed.
Q How do I switch from one investment option to another?A You can switch your investment option either by filling in a new Investment Choice form or logging onto MyLife Online and switching online - it's easy and free.
Q Does it cost to switch investments?A Current policy is not to charge any spread or fee for switching.
Q How many times can I switch?A There is no cap on the number of times you switch your investments. You can do this in MyLife Online or via a form.
Q When will my switch be processed/applied?A All investment switches will be processed on a forward pricing basis.
This means that applications will be processed after the declaration of the current week’s unit price (generally on a Tuesday). For example, an application received before 5:00pm on Friday (Melbourne, Victoria time) will be processed based on the unit price declared on the Tuesday of the following week. This is to ensure the equitable treatment of all Catholic Super members.
The request for a switch must be received by Catholic Super no later than 5.00pm on Friday (Melbourne, Victoria time). If received later than 5:00pm on Friday, the request to switch will be recorded as being received in the following week and will be processed based on the subsequent Tuesday’s unit price. Any electronic delays in receiving the switch may result in the request not being received by 5.00pm and therefore Catholic Super will take no responsibility for any delays in receiving the request.
Q When should I switch?A We cannot advise you when you should switch your investment choice. We recommend you seek financial advice to review your own situation and what would best suit you. It is important to note that superannuation is a long term saving for your retirement.
Q Why are my earnings different from the returns shown on the website and on my annual statement?A The Fund returns shown for each investment option on the website and your annual statement are calculated using monthly investment returns, which are determined by dividing the unit price at the end of the month by the unit price at the end of the previous month. The monthly returns are then compounded to give the 1 year return. The returns for 3, 5 or 10 year periods are annualised returns.
The account balances and earnings shown in your statement are based on weekly unit prices. Investment returns calculated using these numbers may differ from the Fund returns due to:
- Member transactions (e.g. contributions, withdrawals, or investment switches), and
- The different cut off dates between weekly unit prices, which are used for member transactions, and the end of month unit prices, which are used for valuation purposes for calculating the Fund returns.