Effective from 1 March 2009, Health Super calculates and sets an interim investment return for all member investment options each week. This process will replace the current method of using the most recent declared monthly crediting rate until a new declared monthly crediting rate is available.
For example, if a member were to request a benefit payment (partial payment, rollover, account estimate) during the year, there will be a period of time at the end of each month where the monthly rate has not yet been declared. An interim return will apply during this period from the end of the month to the date of payment or estimate.
The interim rate will apply until the monthly investment return is declared for that month. The interim rate is designed to closely reflect the investment returns for each member investment choice from the last declared rate until the time of transaction. This rate may be higher or lower than the final investment return which will ultimately be determined for the applicable period. The calculation of the interim return also takes into account relevant taxes and investment managers' fees and can be positive or negative.
Health Super's interim investment return policy is designed to provide monthly investment returns for each Member Investment Choice option. The interim returns use indices (e.g. ASX300 for Australian Shares) or proxies to estimate the return for each asset class on a month to date basis. The returns for each asset class are then multiplied by their relevant weight in each MIC option to calculate the interim investment return. The interim returns are calculated on a weekly basis. A final investment return is calculated at the end of each month.
