Daily unit pricing

Daily unit pricing only applies to investment options in our Accumulation Plan, Beneficiary Account, Working Income Stream, and Retirement Income Stream products.

Daily unit pricing gives you up-to-date valuations of your super account balance. This means you can make informed decisions about your investment strategy. We also give you the flexibility to switch between investment options daily.

Unit prices will be published each Victorian business day for all of ESSSuper's unitised investment options. Unit prices will be published here on the next Victorian business day.

The table below shows the unit prices for the past 30 days. You can select an alternate timeframe and also choose to see unit prices for either:

• Accumulation Plan, Beneficiary Account, and Working Income Stream, or
• Retirement Income Stream.

Note: Unit prices are not published on weekends or national and Victorian public holidays so they will not be displayed in this table. Requests received on these days will be processed using the relevant unit price at the close of business on the following Victorian business day.

What are units, unit prices, and investment switching?

When you or your employer contribute to your ESSSuper account, you will receive units in the investment option(s) you have selected for future contributions, or the default investment option if you haven't made a choice. Similarly, the number of units you hold will go down if you make withdrawals from your account and when fees, costs, taxes and insurance premiums are deducted from your account.

Unit pricing provides a method for determining the value of the units you hold on a particular day (i.e. the balance of your super account). The value of your units in each investment option will change each day in accordance with the unit price of that investment option on that day. The unit price of each investment option will change from day to day to reflect movement in the underlying assets that support that investment option.

You can choose which investment option(s) your existing super is invested in and also which investment option(s) your future contributions are allocated to. Choosing where to investment future contributions and transfers is referred to as your investment strategy for future contributions. Moving your super balance(s) from one (or more) investment option to another is called an investment switch. More information is available on our Investment options web page.

Here's an example^* of how units, unit prices, and investment switches relate to each other:

Casey chose our Shares Only investment option, and three months ago they had a total of 200,000 units allocated to that option. At the time, each unit in the Shares Only option was worth $0.95 so their total super balance was $190,000 (i.e. 200,000 x 0.95).

Two months ago, Casey contributed $1,000 in to their super. On the day the $1,000 contribution was processed, the Shares Only unit price was $1.00. This means 1,000 units (i.e. 1,000 ÷ 1) were added to their account. Casey then had a total of 201,000 units at $1.00 each, so their total super balance was $201,000 (i.e. 201,000 x 1) on that day.

Last month, Casey contributed another $1,000 in to their super. On the day the $1,000 contribution was processed, the Shares Only unit price was $1.25. This means 800 units (i.e. 1,000 ÷ 1.25) were added to Casey's account. They then had a total of 201,800 units at $1.25 each, so their total super balance was $252,250 (i.e. 201,800 x1.25) on that day.

Since then $300 of insurance premiums and fees have been deducted from Casey's ESSSuper account, and Casey reached the preservation age so they decided to withdraw $1,500 from their super. Coincidentally, all these transactions happened on the same day and the Shares Only unit price was back at $1.00. This means 300 units (i.e. 300 x 1) were deducted for the premiums and fees, and 1,500 units (i.e. 1,500 x 1) were deducted to pay the withdrawal. Casey then had a total of 200,000 units at $1.00 each, so their total super balance was $200,000 (i.e. 200,000 x 1) on that day.

Yesterday, Casey contributed another $1,000 in to their super. On the day the $1,000 contribution was processed, the Balanced unit price was again $0.80. This means 1,250 units (i.e. 1,000 ÷ 0.8) were added to their account. Casey then had a total of 276,250 units at $0.80 each, so their total super balance was $221,000 (i.e. 276,250 x 0.8) on that day.

In other words:

• The amount of units added or deducted to/from your super's investment option(s) is based on the amount being contributed, withdrawn, or deducted and the unit price of your investment option(s) on the date the transaction was processed. Please refer to specific details on this web page for more information about effective times and dates for investment switches.

• Each day, your super balance will be the number of units you hold in each investment option multiplied by the unit price of those options on that day.

• Unit prices can go up and go down reflecting both positive and negative returns.

• A change in unit price is a reflection of the investment performance of the investment option(s).

• Past performance is not a reliable indicator of future performance.

• Switching from one investment option to another will require you to sell units in the investment option(s) you are moving out of and purchase units in the investment options(s) you are moving in to. The unit prices for each investment option are likely to be different on the day of the switch. The amount of units purchased in the new investment option(s) will depend on the unit price(s) of the investment option(s) on that day. This means the total number of units purchased is likely to be different to the total number of units sold, but the total dollar balance out of your investment option(s) selected will be the same as the total dollar balance in to the selected investment option(s) the day your switch is processed.

* This is an example only and not representative of the unit price and/or the returns associated with our investment options.

When will my request to switch investment options take effect? Does it matter what time of day I submit my request online?

Investment switch requests received before 11:00am (Melbourne time) will take effect on the following business day. Switch requests received after 11:00am will be regarded as being received on the next business day, and will take effect on the business day after that.

For example:

• Switch requests received before 11:00am on a Thursday will have Thursday's unit price applied. Thursday's unit price will be calculated on Friday and the switch will be reflected in your account with an effective date of Friday.
• Switch requests received after 11:00am on a Thursday will have Friday's unit price applied. Friday's unit price will be calculated on Monday and the switch will be reflected in your account with an effective date of Monday.

This example assumes that none of the days listed are Victorian public holidays. If a switch is received after 11:00am the day before a Victorian public holiday, the effective date applied to the switch will be the next Victorian business day.

How are unit prices calculated?

As investment markets fluctuate on a daily basis, the total market value of the assets in each investment option changes. The unit prices for each investment option will be calculated daily, net of fees, costs and investment taxes (if applicable), and applied the next Victorian business day using this formula:

Total market value of the assets in each investment option less fees costs and investment taxes
÷
Number of units held in that investment option

ESSSuper uses a 'forward unit pricing' system, which means that we calculate the unit price for each day's transactions based on the value of assets at the close of business on that day. This includes all transactions submitted by 11:00am (Melbourne time) on that day. For example, transactions taking place on Monday will be based on the value of assets on Monday at close of business (Monday's unit price), and Monday's unit price will be released and take effect on Tuesday. We take the same approach for every transaction in your account, including contributions, rollovers, and investment switches, and to the way we value your account balance.

ESSSuper does not apply a buy/sell spread to the unit prices of our investment options. The current unit price for each investment is the unit price you would receive if you bought or sold units in that investment option on that day. You can change investment options at any time and not incur a buy/sell spread.

Why is there a difference in the unit prices for members in the accumulation phase compared to members in the retirement phase?

Investment tax is deducted from the unit prices of Accumulation Plan, Beneficiary Account, and Working Income Stream investment options before the unit prices are declared. Retirement Income Stream accounts are free of investment income tax.

How does unit pricing work for contributions and withdrawals?

Example:^*

John contributes $100,000 into his super, which is invested in the Growth option.

If the unit price for the Growth option is $1.00, then John's investment will purchase a total of 100,000 units.

Total unit purchased = $100,000 ÷ $1.00 = 100,000 units

If John wants to withdraw $5,000 from his ESSSuper account invested in the Growth investment option, the number of units he redeems is determined by the corresponding unit price for the Growth investment option on the day the transaction is processed.

If the unit price for the Growth investment option on the day his transaction is processed has increased to $1.1575, then John will redeem a total of 4,319.65 units.

The units redeemed = 4,319.65 units x $1.1575 = $5,000

If the unit price for the Growth investment option on the day the transaction is processed has decreased to $0.8425, then John will redeem a total of 5934.72 units.

The units redeemed = 5934.72 units x $0.8425 = $5,000

* This is an example only and not representative of the unit price and/or the returns associated with our investment options.

How does unit pricing work for investment switching?

Example:^*

Sally has 20,000 units in the Conservative option which today has a unit price of $1.50. Sally wants to switch from the Conservative investment option to the Ethical Diversified investment option which today has with a unit price of $3.00.

Switching from Conservative investment option = 20,000 units x $1.50 unit price = $30,000

Switching to Ethical Diversified investment option = $30,000 ÷ $3.00 = 10,000 units

Sally's investment balance will remain at $30,000 for today but the value of the units Sally holds in the Ethical Diversified investment option will change depending on the unit price of the investment option on the day she switches investment options.

* This is an example only and not representative of the unit price and/or the returns associated with our investment options.

Investment returns are not guaranteed. All investments carry risks and past investment performance gives no indication of future performance. Benefits in ESSSuper's Accumulation Plan, Income Streams and Beneficiary Account products are not guaranteed or underwritten by the Victorian Government or ESSSuper, and ESSSuper does not come under the jurisdiction of the Australian Financial Complaints Authority. ESSSuper comes under the jurisdiction of the Victorian Civil and Administrative Tribunal.

The information contained in this document is of a general nature only. Any examples included within this document are for illustration purposes only. They are not intended to be recommendations or preferred courses of action. It should not be considered as a substitute for reading the relevant ESSSuper Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by calling 1300 650 161.