accumulation fund A superannuation fund where the benefit a member receives is the total of contributions to the fund plus earnings on those contributions, minus fees, charges, expenses and tax.
allocated pension A flexible post-retirement (or in some circumstances, pre-retirement) arrangement which allows you to draw on your superannuation benefits in regular payments that you choose within a size range set by the government based on your life expectancy at your attained age.
Australian Ethical Investment Australian Ethical Investment Ltd.
Australian Ethical Superannuation Australian Ethical Superannuation Pty Ltd.
Australian Prudential Regulation Authority (APRA) The controlling regulatory authority for superannuation funds in Australia.
Australian Securities and Investment Commission (ASIC) The regulatory authority for financial services in Australia.
average weekly ordinary time earnings (AWOTE) A measure of wage and salary levels of employees in Australia.
benefit The amount of money in the superannuation fund to which the member is entitled.
buy-sell spread The difference between the price at which you can buy an asset 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 custodians for the Trusts are Sandhurst Trustees Limited and RBC Global Services Australia Pty Ltd. The current custodian for the superannuation fund is Sandhurst Trustees Limited.
derivatives Investment products whose value is derived from other assets. For example, futures, options, swaps and warrants.
direct investment An investment made straight to the Trust or superannuation Fund, not through an adviser.
distribution The income, distributed to unitholders, earned by a trust.
eligible termination payment A lump sum superannuation benefit or a payment by an employer on termination of employment. For tax purposes, such a payment may be split into components, each of which may be taxed differently.
indexed to inflation Adjusted according to the consumer price index, applying from 1 July each year.
lump sum A benefit taken as a single payment, rather than as a pension.
managed fund See unit trust.
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.
member An individual with an account in the superannuation Fund.
post-June 1983 component For superannuation, that part of an eligible termination payment which relates to eligible service after 30 June 1983.
Product Disclosure Statement A legally required document describing a financial product. Formerly known as a prospectus.
reasonable benefit limit (RBL) A government-imposed maximum entitlement within the concessionary tax environment of superannuation. Amounts over your reasonable benefit limit may be taxed at the highest marginal rate.
redemption The withdrawal of an investment from a unit trust.
responsible entity The entity responsible for the operations of a managed investment scheme. The responsible entity of the Trusts is Australian Ethical Investment Ltd.
rollover The transfer of an eligible termination payment from an employer or from another superannuation fund or account.
strategy A strategy is an investment option. Australian Ethical Superannuation offers four strategies for both accumulation and pension accounts, each with a different risk and return characteristic. When you join the Fund you will select the strategy or strategies which best suit your investment needs and objectives.
substantially self-employed An individual who receives some income from one or more employers but where the total income from that employment is less than 10% of their assessable income.
superannuation guarantee Legislation which requires employers to provide a minimum level of superannuation for most employees.
Superannuation Industry (Supervision) (SIS) Act 1993 and Regulations The main body of legislation governing the operation of superannuation funds.
the Fund Australian Ethical Retail Superannuation Fund.
trust deed The legal document governing the operation of a trust. Also, the legal document governing the operation of the superannuation Fund. Copies are available for inspection by investors at our office or on this website.
trustee The single responsible entity under the Superannuation Industry (Supervision) Act for the operation of a superannuation fund. The trustee of the Fund is Australian Ethical Superannuation Pty Ltd.
unit trust, also investment trust and managed fund A form of pooled savings where a number of investors buy units in a trust which is managed by professional investment managers. Much of the money invested in the superannuation Fund will be invested in the public unit trusts managed by Australian Ethical Superannuation's parent company, Australian Ethical Investment Ltd.
unitholder An investor who owns units in a unit trust.
unlisted company A company whose shares are not listed for trade on a stock exchange or securities market. Usually a small company or a company with a relatively small number of shareholders.