Net fund earnings are allocated to your account:
- As at 30 June and 31 December each year (a statement is sent to you in approximately September and March each year)
- When you switch between investment options, or
- When you fully withdraw (exit) or fully transfer out of the Fund.
Declared net fund earning rates are calculated on the daily balance of your account and are compounded daily. This is important as it is likely that you will have different closing balances in your account throughout the year as a result of transactions in your account (eg contributions, taxation, insurance, account keeping fees, etc).
Earnings allocated at 30 June and 31 December
Declared net fund earning rates are used to calculate the amount of earnings to be allocated to your account as at 30 June and 31 December each year.
Earnings allocated when you switch between investment options
You can switch between investment options as often as once a week free of charge.
When you switch between investment options, your request to switch is effective from the following Monday. The latest available declared net fund earning rate will be used to allocate earnings to your account.
Earnings allocated when you exit from the Fund
If you exit the Fund, the latest available declared net fund earning rates are used to determine your account balance.
Calculating earnings on partial withdrawals or partial transfers out of the Fund
When you are invested only in the Balanced option
The latest available declared net fund earning rate will be used to allocate earnings for the amount of the partial withdrawal or partial transfer. However this rate may be adjusted (positively or negatively) with the actual declared net fund earning rate for the applicable period when the first of any of the following events occur:
- 30 June and 31 December each year (a statement is sent to you in approximately September and March respectively)
- When you switch between investment options, or
- When you fully withdraw (exit) or fully transfer out of HOSTPLUS Executive.
- When you have made an investment choice other than the Balanced option
Earnings are not allocated to your account at the time of a partial withdrawal or partial transfer out of the Fund.
The amount of the partial withdrawal or partial transfer is simply withdrawn from your account at the time. Earnings will be allocated when the first of the following events occur:
- 30 June and 31 December each year (a statement is sent to you in approximately September and March respectively)
- When you switch between investment options, or
- When you fully withdraw (exit) or fully transfer out of HOSTPLUS Executive..