Glossary

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Click one of the letters above to advance the page to terms beginning with that letter.
Administrator
An entity that provides administration services to superannuation funds and their investors, such as online services, investor record management, transactional systems and customer call centres.
Benchmark
An equivalent market comparison of each investment choice/strategy to measure performance.
Benefit
The amount of money in the superannuation fund to which the investor is entitled.
Buy-sell spread
The difference between the price at which you can buy a unit and the price at which you can sell it; a measure of transaction costs.
Custodian
An entity which holds assets on behalf of another. The custodian for superannuation and managed funds is National Australia Bank (National Custodian Services).
Derivatives
Investment products whose value is derived from other assets. For example, futures, options, swaps and warrants.
Direct investors
An investor who invests straight into the managed funds or superannuation, not through an adviser or third party.
Distribution
The income earned by the managed funds and distributed to investors of the managed funds.
Hedging
A method of reducing exposure to exchange rate fluctuations and protecting the Australian dollar value of international investments.
Indexing
Adjusting fees according to the consumer price index in order to reduce the effects of inflation.
Investment strategy/choice
An option you can choose within our superannuation fund or managed funds, each option has a different risk and return characteristic. When you invest in our products, you select the option(s) based on what best suits your investment needs and objectives.
Investor
An investor in superannuation and/or managed funds.
Lump sum
A benefit taken as a single payment, rather than as a pension.
Managed fund
Also called managed investment schemes, unit trusts, managed trusts, pooled funds, mutual funds, collective investments and investment funds. When you invest into a managed fund, your money is ‘pooled’ together with other investors’ money to buy assets. In exchange for the money you invest, units are issued to you with certain rights attached (such as the right to a share of any income).
Market capitalisation
A measure of the size of a company. It is the product of multiplying its share price by the total number of shares on issue.
Power of attorney
A legal document authorising one to act on behalf of another.
Product Disclosure Statement
A legally required document describing a financial product. Formerly known as a prospectus.
Product guide (PDS)
The short version of the Product Disclosure Statement.
Responsible entity
The entity responsible for the operations of a managed fund. The responsible entity of the managed funds is Australian Ethical Investment Ltd.
Rollover
Transfer of benefits from one superannuation fund to another
Rollover fund
A type of superannuation fund that is designed to receive superannuation benefits that other superannuation funds do not want or cannot keep.
Self-managed super fund
A superannuation fund that is independently established and run. Legal responsibility for running the fund and complying with legal requirements falls on the individual as trustee.
Shareholder
An owner of shareholdings in the company, Australian Ethical Investment Ltd.
Superannuation Guarantee
Legislation which requires employers to provide a minimum level of superannuation for most employees.
Trust deed
The legal document governing the operation of a managed fund or superannuation fund.
Trustee
An entity that is responsible for looking after the operation of a superannuation fund for the benefit of its members. Australian Ethical Superannuation Pty Ltd is the trustee for australianethical Superannuation.
Unit registry
An entity that provides administration services for managed funds and their investors, such as online services, investor record management and transactional systems.
Unlisted
An entity whose shares are not listed for trade on a stock exchange or securities market.
Withdrawal
Taking out some or all of your investment from the managed funds. Your investment is converted to cash when you redeem your units in the managed funds. Also known as a redemption.