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Unit pricing philosophy

Philosophy

At MLC when we strike a unit price we aim to provide you with an accurate price to ensure your 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 you our customer.

What is 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. MLC has 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. MLC may however suspend prices in order to ensure equity between investors if we do not believe we can accurately or reliably calculate a price for a particular day. An example of this would include when one or more of the major stock exchanges are closed.

What is an effective date?

The effective date defines which days unit price you will be given for your 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 does not 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. At MLC our unit prices are continually monitored using a robust process. The process is designed to maintain equity between each investor and ensure MLC does not benefit at the expense of our investors.

If your performance is substantially impacted we will ensure your account balance is put back into the position it should have been.

Go to MLC's unit prices.


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