CareSuper - Knowledge centre

Glossary

Australian Securities And Investments Commission (ASIC)

One of the Federal Government agencies regulating superannuation funds and the financial services sector. ASIC's main areas of responsibility are the Corporation's Law and the Financial Services Reform Act. In broad terms, consumer disclosure issues (I.e. fees) are regulated by ASIC while prudential matters are regulated by APRA.

AWOTE (Average Weekly Ordinary Time Earnings)

A measure of wage or salary levels of employees in Australia as measured by the Australian Bureau of Statistics and published monthly.

Balanced Fund

A super fund or investment option that spreads its investments across a range of asset classes, but where usually around 70 per cent of the fund is held in shares or property. A balanced fund aims to produce high rates of return over the medium to long term and will usually occupy a middle position in terms of risk - more volatile than a primarily cash and fixed interest fund but less volatile than a fund investing only in shares and property. A balanced fund may also be referred to as market-linked, managed, capital growth, growth, growth managed.

Basis Point

A commonly used measure of movement in investment return fees/charges. One basis point equals one hundredth of one per cent. For example, if interest rates increase form 6.00 per cent to 6.25 per cent, it has moved by 25 basis points.

Beneficiary

A person whose benefit assets are being held. Beneficiaries of a superannuation fund are the members and their dependents.

Benefit

The amount of money in the superannuation fund to which the fund member is entitled.

Complying Superannuation Fund

A superannuation fund that has chosen to be regulated under the Superannuation Industry (Supervision) Act 1993 (SIS) and which meets the Government's operational standards for superannuation funds. Only regulated Superannuation Funds can be complying funds. If a fund is not a Regulated Superannuation Fund and/or is non-complying, it is ineligible for taxation concessions and so it will be taxed at full company rates rather than the concessional superannuation fund rates.

Contributions

Regular or one-off payments to a super fund. They can be compulsory contributions made by employers (as required by law or industrial award) or voluntary contributions made in addition by either the employer or by members for themselves or their spouses.

Corporate Master Trust

A publicly offered master trust targeted at larger employers, normally marketed through superannuation consultants, which may offer discounted fees and other optional services.

Corporate Superannuation Fund

A superannuation fund established for the benefit of employees of a particular company, or group of companies, that is directly managed by the company. A corporate superannuation fund is sometimes referred to as an "in-house" fund.

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