Net investment performance allows for both gains (positive) and losses (negative), after fees and applicable taxes, and is a percentage rate applied to members’ account balances.
The Westscheme Trustee has delegated authority to the Chief Executive to determine the net investment performance for each investment option, based on advice from its investment advisers including estimates of each investment option’s asset allocations and asset class returns including allowances for taxes and fees.
Under this delegated authority the Chief Executive adopts net investment performance rates for the investment options each month on the basis of information available at the time of adoption. Information that comes through subsequently is incorporated as an adjustment to subsequent months. In setting the net investment performance each month, regard is given to the distribution/recovery of any previously unallocated earnings/losses, including taxes and fees, advised in the previous months.
Until the net investment performance for a particular month has been set, interim investment performance results apply which are updated weekly and can be updated more often in the event of significant changes in investment values.
As the relevant investment information required by them to determine net investment performance for a month is not generally available until approximately 30 days after a month end the net investment performance declared is always in arrears. For example, the net investment performance for June will be set at the end of July when the investment data for June becomes available.