Fund reserves

Australian Enterprise Super is one of four divisions of the Professional Associations Superannuation Fund.

A reserve is maintained by the Fund for the following purposes:

•    To meet expenses not met by fees deducted from member’s accounts
•    To cover the cost of any unforeseen events, and
•    To smooth investment earnings in times of volatility.

If the fees charged to members are more than the administration and investment expenses incurred in managing the Fund, some or all of the difference may be used to increase investment returns to members or may be credited to the reserve.

Reserves may also be built up by retaining part of the investment earnings that would otherwise be allocated to members’ accounts.

Reserves are calculated as the excess of the assets over the liabilities of the Fund.

The reserves of the Fund are not invested as separate investment holdings but are invested as part of the entire pool of Fund assets. 

Reserves are managed and maintained on a Fund wide basis and not as separate divisional reserves and in accordance with the Fund's Investment Earnings Distribution and Reserving Policy.