In certain circumstances, if an investment manager outperforms their performance target, they may be paid PBF. The Investment Manager Fees include, where applicable, an estimate of any PBF. The Investment Manager Fee is deducted from the Fund's assets before the unit price is determined on a weekly basis.
The Media Super Balanced, High Growth, Growth, Stable, Australian Shares and Property options all have a percentage of assets invested with investment managers who may be eligible for PBFs. These managers are potentially paid a PBF determined as a percentage of the manager’s return achieved in excess of the specified target rate for the manager over an agreed period. The PBF only applies when performances are greater than the specified target. Some managers have a ‘high watermark’ associated with their PBF. A high watermark indicates that if the manager fails to meet the specified target rate over one time period, they have to get back to the previous level before getting a PBF on new excess returns.
The estimated PBFs were determined based on indicative annualised calculations using information for the period 1 July 2008 to 31 August 2009. The extent of any PBF cannot be determined in advance. The PBFs vary according to the amount of out-performance achieved by each applicable investment manager and the weighting of that investment manager in the relevant investment option.