Derivatives and their use
While the Trustee doesn’t directly invest in derivatives, the managers of the underlying investments may use derivatives indirectly as a hedging device to help protect the value of assets against a significant decline in investment markets.
(Derivatives are a type of security that derive their value from other security types, like futures and options. They’re often used to increase returns while minimising the risk of losing money).
How we value your super and pass on investment earnings
When you invest in Virgin Super, you don’t buy actual assets – instead, you are allocated units in the investment option your money goes into.
Your account balance is calculated by multiplying the number of units you have by the applicable unit price (at any particular time). Your account balance will reflect that unit prices may fluctuate from day to day based on the value of underlying investments after taking into account any investment earnings and relevant fees, costs and taxes. Each investment option has a different unit price, because they grow at different rates. Unit prices may fall as well as rise and in this way investment earnings (negative or positive) are passed on to members.
There is a difference between the unit price we use when you put money into an investment option and the one we use when you take money out, this is called a buy/sell spread. Unit prices are usually calculated daily, based on the latest available market price at the end of each business day. The unit price is normally calculated the next business day. (For more information on buy/sell spreads^, read the current Virgin Super PDS.)
How the fund was invested at 30 June 2012
Note: Macquarie True Index Australian Fixed Interest Fund, Macquarie True Index Listed Property Fund, Macquarie International Index Equity Fund (Unhedged), Macquarie International Index Equity Fund (Hedged) and Macquarie True Index Australian Equity Fund each represented more than 5% of the Fund’s total assets.
* Tax Provision is the money that’s set aside to pay the Contributions Tax to the Tax Office each year. For further information, refer to the “Key Fund Information” section of this report.
^A Buy price applies when acquiring units (for example, when you join the Fund or switch into a new investment option). A Sell price applies when selling units (for example, when you leave the Fund or switch out of an investment option). Buy/sell spreads can change from time to time.