Philosophy
At MLC when we strike a unit price we aim to provide an accurate price to ensure valuations are consistent, relevant and appropriate. We have a series of policies which set out our obligations and guiding principles when setting a unit price. These policies have been endorsed by our Boards and are considered to be in the best interests of our customers.
What’s included in a unit price?
The unit price is made up of the value of the assets, (receivables and payables) with fees and taxes deducted. We have robust procedures to ensure each unit price is calculated in a consistent manner.
How often do we strike prices?
We strike a unit price every day. However, we may suspend prices in order to ensure equity between investors if we don’t believe we can accurately or reliably calculate a price for a particular day. An example would be when one or more of the major stock exchanges are closed.
What’s an effective date?
The effective date defines which day’s unit price will be given for a transaction.
How do we value the assets?
All asset valuations are derived from the latest available market close where an active market exists. For example, Australian shares are valued daily as at market close. Where an active market doesn’t exist, we may obtain a valuation from an independent third-party valuer.
For all unit linked superannuation funds, a reasonable estimate of the tax provision is used when we strike a unit price. MLC includes an appropriate proportion of potential future tax benefits in its unit prices.
What happens if we make a mistake?
Any error that may occur we will correct. Our unit prices are continually monitored using a robust process. The process is designed to maintain equity between each investor and ensure we don’t benefit at the expense of our investors.
If your client’s performance is substantially impacted we’ll ensure their account balance is put back into the position it should have been.
View our current unit prices.