Why does an investment switch take up to 5 days to be processed?
Answer
The Trustee of First State Super has implemented a five day processing investment strategy switch policy for a number of reasons.
Daily unit pricing requires daily balancing of each of the Fund's 10 investment strategies as well as daily movement of monies between assets classes. At First State Super thousands of daily transactions occur which take time to process and accurately allocate to assets classes.
Once the administrator has received a member’s investment strategy switch form, the form is subject to verification and an identification process, making sure it is a genuine instruction from the member and that the instructions are clear and complete.
The Trustee will then give notice to investment managers to sell certain assets and buy other assets (i.e. trade assets). In financial markets the trading of assets alone can take two to three days to settle.
Using a 5 day processing period ensures that the investment returns earned in the period it takes to trade assets matches the unit prices on the day of actual switch.
The information on this website contains general information and does not take into account your personal objectives, financial situation or needs. It is important, before deciding whether to become a member of First State Super (or, if you are already a member, to continue your membership) that you consider the First State Super Your Member Guide Product Disclosure Statement having regard to you own situation.
