CareSuper - Knowledge centre

Glossary

Accumulation Fund

A superannuation fund where your accrued benefit is the total accumulated value of your contributions and interest, less fees and costs. It is sometimes referred to as a defined contribution fund.

Allocated Pension

A pension or annuity arrangement where a person chooses to take, on a regular basis (e.g. monthly), an amount within prescribed limits, from their account until death or there is nothing in the account. On death, the balance may be paid as a lump sum to a designated beneficiary, used to buy a further pension for a surviving spouse or may continue as a reversionary pension. The main differences between an allocated and a traditional pension are that the former offers access to the invested capital with some flexibility in the regular payment amount but it offers no protection against the money running out during the person's lifetime.

Annual Member Benefit Statement

A statement, required by legislation to be produced at least annually, sent to each fund member displaying specific information about their personal details and benefits. Information includes (but is not limited to): the amount at the beginning and end of the period and the calculation method; preserved amounts; member/employer contributions during the period; net earnings allotted; death benefit; and fees, charges and expenses.

Approved Trustee

A trustee company approved by the Australian Prudential Regulation Authority (which must be satisfied that the company can be relied onto perform the duties of a trustee in a proper manner) and fulfils other minimum liquidity/financial requirements. Only approved trustees can promote a public offer superannuation fund.

Asset

Anything of value in the form of cash (including amounts owed), fixed assets such as property or equipment, or intangibles such as a company's goodwill or brand. A superannuation fund's assets might include shares, property, cash or fixed interest investments. For accounting purposes, assets are resources held to produce future economic benefits, for example providing future cost savings or generating future revenue or capital gain.

Asset allocation

The distribution of a super fund's money across a range of asset types (shares, property, fixed interest and cash) to make up their investment portfolio. Superannuation fund trustees base their asset allocation decisions on the relative investment outlook of the asset classes as well as the investor's risk profiles.

Asset Class

A category or class of investments that your superannuation fund can hold. The major asset classes are shares, property, fixed interest and cash, which in turn can be broken down further to include, for example, domestic or international and direct or indirect property investments.

Asset class benchmark

The percentage of the investment option usually invested in a particular class of asset. The benchmark usually falls within a range that is decided for each asset class. For example, if the range for shares is set at 30% to 60%, then a benchmark of 40% of the assets could be set to be invested in shares. This percentage rate could increase or decrease but should never be less than 30% or more than 60%.

Asset Consultant

A specialist consultant expert in helping a super fund devise its investment strategy and select investment managers to execute that investment strategy.

Australian Prudential Regulation Authority

One of the Federal Government agencies which regulates superannuation funds, and other financial sector bodies, ensuring they operate within specific financial guidelines.

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CARE Super Pty Ltd (Trustee) ABN 91 006 670 060 AFSL 235226 CARE Super (Fund) ABN 98 172 275 725