Units are the basis for how your account balance works, including how investment returns are applied.

 

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Investment returns are derived from change in unit prices

Unit prices are generated for each NSW bank business day. The unit price will generally increase or decrease from day to day, depending on the market value of the investment option’s assets and/or the total number of units held by investors in the option on a particular day. This change in an investment option’s unit price represents the option’s investment return over any given period.

Although the number of units you hold in an option will generally stay the same (unless there is a transaction on your account), the unit price (and therefore your account balance) will generally change each day.

 

Your account balance is determined by the number of units you hold

The unit price is used to calculate how many units in an investment option are bought or sold with each credit to or withdrawal from your account. It is also the basis for determining the value of your account on any given day.

Each time money is added to or withdrawn from your account (or switched between investment options), your unit holding will increase or decrease accordingly, based on the transaction value and the unit price for the effective date.

For example

Your current investment selection for your account is the Growth and Moderate options. You decide to switch $2,500 from the Growth option to Moderate. The unit price for Growth on the transaction date is $1.4710, which means your Growth balance will decrease by 1699.5241 units ($2,500 divided by the Growth unit price). The Moderate unit price on the transaction date is $1.4303, which means your Moderate balance will increase by 1747.8851 units ($2,500 divided by the Moderate unit price).

 

The value of your account depends on the number of units you hold in an investment option and the unit price for that investment option at any given time. To work out your account balance, simply multiply the number of units you hold in an investment option by the option’s unit price for the day.