How and when earnings are applied
Crediting rates are calculated for each investment option. They are the option's return net of investment fees and tax. The crediting rates vary throughout the year and can be positive or negative. The exception to this is the Capital Guaranteed option. This option is capital guaranteed and cannot declare negative returns.
Cbus members generally have their accounts credited with earnings once a year, at 30 June. However, if you choose to change your investment option or withdraw money during the year, accumulated monthly crediting rates and an interim month-to-date rate are used to determine your account balance at the time your transaction is processed. These rates are applied for the period from 1 July or since you last switched options (whichever is most recent).
Note: many of Cbus' property investments are only valued at the end of the financial year. The increase or decrease in property value resulting from this valuation is factored into the June monthly crediting rate and the annual crediting rate.
If you want more information about investment returns, please contact us on 1300 361 784.