Retirement

How unit prices work

If you're a member of the Quadrant Investment Choice fund or the Quadrant Personal Super fund every dollar you invest will buy 'units' in the investment option/s that you have chosen. Each contribution and rollover that comes into the fund purchases units in the investment option/s you have selected.

For example, if you invest $10 and the unit price is $1 per unit, you will get 10 units. You will retain these units until you switch investment options or cash in your super. When withdrawals are made, units are redeemed to fund these payments.

When you receive your benefit statement you will be able to see how many units you have in the fund. If you compare previous statements, you will see that the number of units you own has increased because your contributions have purchased more throughout the year, provided that you have not made any withdrawals.

The unit price will change weekly according to changes in the market value of the investment option you have chosen (just like the share market). So your account balance may increase or decrease in line with the unit price.

It is only when you withdraw money from the fund that your benefit, which is based on the unit price at that time, is realised.

How many units do I get?

The number of units you get depends on the unit price at the time your contributions are received.

For example, if you invest $100 each month, and in the first month the price of each unit is $1 then you will get 100 units.

If in the next month the unit price increases to $2 you will only get 50 units. If, over time, the price decreased to 90 cents you would get 111 units.

How does the unit price relate to the fund's rate of return?

Sometimes when you compare the annual rate of return with your current account balance it does not seem to add up. This is often the case when looking at the earnings over a short period versus an annual rate of earnings.

For example, an investment could have a low or negative return for the month or quarter (three month period), but the full twelve-month period (including that month or quarter) may still show a healthy positive return.

For more information about where Quadrant's money is invested please refer to the latest annual report.