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No. 25 of 2015 Determinations/Financial (Other) as made
This instrument determines Reporting Standard SRS 801.0 Investments and Investment Flows.
Administered by: Treasury
Exempt from sunsetting by the Legislation (Exemptions and Other Matters) Regulation 2015 s11 item 06
Registered 30 Jun 2015
Tabling HistoryDate
Tabled HR10-Aug-2015
Tabled Senate10-Aug-2015

Financial Sector (Collection of Data) (reporting standard) determination No. 25 of 2015

Reporting Standard SRS 801.0 Investments and Investment Flows

Financial Sector (Collection of Data) Act 2001

 

I, Charles Littrell, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:

(a)     REVOKE Financial Sector (Collection of Data) (reporting standard) determination No. 15 of 2014, including Reporting Standard SRS 801.0 Investments and Investment Flows made under that Determination; and

(b)     DETERMINE Reporting Standard SRS 801.0 Investments and Investment Flows, in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.

Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities, and the revoked reporting standard shall cease to apply, on and after 1 July 2015.

 

This instrument commences on the date of registration on the Federal Register of Legislative Instruments.

 

Dated: 24 June 2015

 

 

[Signed]

 

 

Charles Littrell

Executive General Manager

Policy, Statistics and International Division


Interpretation

In this Determination:

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the meaning given by section 5 of the Act.

 

Schedule

 

Reporting Standard SRS 801.0 Investments and Investment Flows comprises the 22 pages commencing on the following page.


 

Reporting Standard SRS 801.0

Investments and Investment Flows

Objective of this Reporting Standard

This Reporting Standard sets out the requirements for the provision of information to APRA relating to the asset allocation and investment flows of a small APRA fund or a single member approved deposit fund.

It includes Form SRF 801.0 Investments and Investment Flows and associated specific instructions.

 

Authority

1.             This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Purpose

2.             Information collected in Form SRF 801.0 Investments and Investment Flows (SRF 801.0) is used by APRA for the purposes of prudential supervision and publication.

Application and commencement

3.             This Reporting Standard applies to each registrable superannuation entity (RSE) licensee (RSE licensee) of a small APRA fund (SAF) or a single member approved deposit fund (SMADF) within its business operations in respect of each SAF or SMADF.[1]

4.             This Reporting Standard applies for reporting periods ending on or after 1 July 2015.

Information required

5.             An RSE licensee to which this Reporting Standard applies must provide APRA with the information required by SRF 801.0 in respect of each reporting period.

Forms and method of submission

6.             The information required by this Reporting Standard must be given to APRA in electronic format using the ‘Direct to APRA’ application or, where ‘Direct to APRA’ is not available, by a method notified by APRA, in writing, prior to submission.

Note: the ‘Direct to APRA’ application software (also known as ‘D2A’) may be obtained from APRA.

Reporting periods and due dates

7.             Subject to paragraph 8, an RSE licensee to which this Reporting Standard applies must provide the information required by this Reporting Standard in respect of each year of income of each SAF or SMADF within its business operations.

8.             If, having regard to the particular circumstances of a SAF or SMADF, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by paragraph 7, APRA may, by notice in writing, change the reporting periods for the particular SAF or SMADF.

9.             The information required by this Reporting Standard must be provided to APRA:

(a)           within three months after the end of the year of income to which the information relates; and

(b)          in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.

10.         APRA may grant, in writing, an RSE licensee an extension of a due date with respect to one or more SAFs or SMADFs within its business operations, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

11.         The information provided by an RSE licensee under this Reporting Standard must be the product of systems, procedures and internal controls that have been reviewed and tested by the RSE auditor of the SAF or SMADF to which the information relates.[2] This will require the RSE auditor to review and test the RSE licensee’s systems, procedures and internal controls designed to enable the RSE licensee to report reliable information to APRA. This review and testing must be done on:

(a)           an annual basis or more frequently if necessary to enable the RSE auditor to form an opinion on the reliability and accuracy of information; and

(b)          at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of SPS 310.

12.         All information provided by an RSE licensee under this Reporting Standard must be subject to systems, processes and controls developed by the RSE licensee for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the RSE licensee to ensure that an appropriate set of policies and procedures for the authorisation of information submitted to APRA is in place.

Authorisation

13.         When an officer or agent of an RSE licensee provides the information required by this Reporting Standard using the ‘Direct to APRA’ software, it will be necessary for the officer or agent to digitally sign the relevant information using a digital certificate acceptable to APRA.

14.         If the information required by this Reporting Standard is provided by an agent who submits using the ‘Direct to APRA’ software on the RSE licensee’s behalf, the RSE licensee must:

(a)           obtain from the agent a copy of the completed form with the information provided to APRA; and

(b)          retain the completed copy.

15.         An officer or agent of an RSE licensee who submits the information under this Reporting Standard for, on behalf of, the RSE licensee must be authorised by either:

(a)           the Chief Executive Officer of the RSE licensee; or

(b)          the Chief Financial Officer of the RSE licensee.

Variations

16.         APRA may, by written notice to an RSE licensee, vary the reporting requirements of SRF 801.0 in relation to that RSE licensee or one or more SAFs or SMADFs within that RSE licensee’s business operations.

Interpretation

17.         In this Reporting Standard:

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;

Chief Executive Officer means the chief executive officer of the RSE licensee, by whatever name called, and whether or not he or she is a member of the Board of the RSE licensee[3];

Chief Financial Officer means the chief financial officer of the RSE licensee, by whatever name called;

due date means the relevant date under paragraph 9 or, if applicable, paragraph 10;

reporting period means a period mentioned in paragraph 7 or, if applicable, paragraph 8;

RSE auditor means an auditor appointed by the RSE licensee to perform functions under this Reporting Standard;

RSE licensee has the meaning given in section 10(1) of the SIS Act;

single member approved deposit fund (SMADF) means a superannuation entity that is an approved deposit fund, within the meaning given in section 10(1) of the SIS Act, that has only one member;

SIS Act means Superannuation Industry (Supervision) Act 1993;

small APRA fund (SAF) means a regulated superannuation fund, within the meaning given in section 10(1) of the SIS Act, which has fewer than five members; and

year of income has the meaning given in section 10(1) of the SIS Act.

 

 


SRF 801.0: Investments and Investment Flows

 

Australian Business Number

Institution Name

 

Reporting Period

Scale Factor

Reporting Consolidation

 

 

1.    Total investments

 

Value

Australia domicile

(1)

(2)

1.1.  Total investments

 

1.1.1.    of which: Individually managed mandates

 

 

2.    Directly held investments

 

Asset class type

Asset domicile type

Asset listing type

Value

of which: Currency hedged

of which: Individually managed mandates

(1)

(2)

(3)

(4)

(5)

(6)

Cash

Australia domicile

Listed

 

 

 

Fixed Income

International domicile

Unlisted

 

 

 

Equity

Not applicable

Not applicable

 

 

 

Property

 

 

 

 

 

Infrastructure

 

 

 

 

 

Commodities

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

2.1.  Total directly held investments

 

 

 

 


 

3.    Indirectly held investments

 

Asset class type

Asset domicile type

Asset listing type

Value

of which: Currency hedged

of which: Individually managed mandates

(1)

(2)

(3)

(4)

(5)

(6)

Cash

Australia domicile

Listed

 

 

 

Fixed Income

International domicile

Unlisted

 

 

 

Equity

Not applicable

Not applicable

 

 

 

Property

 

 

 

 

 

Infrastructure

 

 

 

 

 

Commodities

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

3.1.  Total indirectly held investments

 

 

 

 


4.    Indirectly held investments by vehicle

 

Investment vehicle type

Investment vehicle domicile type

Value

(1)

(2)

(3)

Cash management trust

Australia domicile

 

Life company guaranteed

International domicile

 

Life company investment linked

Not applicable

 

Life company other

 

 

Listed retail trust

 

Pooled superannuation trust

 

Unlisted retail trust

 

Wholesale trust

 

Other indirect investment

 

 

4.1.  Total indirectly held investments

 

 

5.    Movements in directly held investments

 

Asset class type

Asset domicile type

Asset listing type

Net transactions

(1)

(2)

(3)

(4)

Cash

Australia domicile

Listed

 

Fixed income

International domicile

Unlisted

 

Equity

Not applicable

Not applicable

 

Property

 

 

 

Infrastructure

 

 

 

Commodities

 

 

 

Other

 

 

 

 

Investment income

Unrealised gains/ losses

Realised gains/ losses

Total gains/ losses

of which: Foreign exchange gains/ losses

(5)

(6)

(7)

(8)

(9)

 

 

 

 

 

 

 

 

 

 

5.1.  Total movements in directly held investments

 

 

 

 

 

 

6.    Movements in indirectly held investments

 

Asset class type

Asset domicile type

Asset listing type

Net transactions

(1)

(2)

(3)

(4)

Cash

Australia domicile

Listed

 

Fixed income

International domicile

Unlisted

 

Equity

Not applicable

Not applicable

 

Property

 

 

 

Infrastructure

 

 

 

Commodities

 

 

 

Other

 

 

 

 

Investment income

Unrealised gains/ losses

Realised gains/ losses

Total gains/ losses

of which: Foreign exchange gains/ losses

(5)

(6)

(7)

(8)

(9)

 

 

 

 

 

 

 

 

 

 

6.1.  Total movements in indirectly held investments

 

 

 

 

 

 

 

 

Directly held derivatives

7.         Directly held derivatives

Yes

 

No

 

 

Securities lending program

8.         Securities lending program

Yes

 

No

 

 


Reporting Form SRF 801.0

Investments and Investment Flows

Instructions

These instructions assist completion of Reporting Form SRF 801.0 Investments and Investment Flows (SRF 801.0). SRF 801.0 collects information on the asset allocation and investment flows of a small APRA fund (SAF) or single member approved deposit fund (SMADF). Information reported in SRF 801.0 is required primarily for prudential, publication and statistical purposes.

Reporting level

SRF 801.0 must be completed for each SAF or SMADF.

Reporting basis and unit of measurement

Report all items on SRF 801.0 in accordance with the Australian Accounting Standards unless otherwise specified.

Assets and liabilities denominated in currencies other than AUD are to be converted to AUD using the mid-point rate (of market buying and selling spot quotations) effective as at the end of the reporting period. An RSE licensee is free to use those AUD exchange rates that it judges to be a representative closing mid-market rate as at the end of the reporting period. However, to ensure consistency across related returns and to assist in the reconciliation between these returns, an RSE licensee should attempt to use the same exchange rates across all returns to APRA. For APRA reporting purposes, an RSE licensee may continue to apply the Australian Accounting Standards when converting income and expenses to AUD.

Note: for the major currencies, an RSE licensee may want to use the exchange rates available in the Reserve Bank of Australia (RBA), which are available on the RBA website: http://www.rba.gov.au/statistics/hist-exchange-rates/index.html.

Items on SRF 801.0 must be reported as at the end of the reporting period or with respect to transactions that occurred during the reporting period.

Items on SRF 801.0 are to be reported as thousands of dollars and percentages. Report percentages as a whole number to one decimal place, i.e. 10 per cent is to be reported as 10.0.

Certain items in SRF 801.0 are to be reported on an APRA-look through basis. Reporting on an APRA-look through basis means:

(a)           where the ultimate investment is held directly by the RSE licensee, reporting that investment;

(b)          where the ultimate investment is held by a person connected with the RSE licensee, reporting that investment; and

(c)           where the ultimate investment is not held by the RSE licensee or a person connected with the RSE licensee, reporting the most proximate investment, of a person connected with the RSE licensee, to the ultimate investment.[4]

These instructions specify the reporting basis, unit of measurement and APRA-look through basis that applies to each item.

Specific instructions

Terms highlighted in bold italics indicate that the definition is provided in these instructions. Additional definitions are provided at the end of these instructions.

Total investments

Item 1 collects information about the domicile of investments and the extent of individually managed mandates within total investments.

Reporting basis: report item 1 as at the end of the reporting period.

Unit of measurement: report item 1 in thousands of dollars.

APRA-look through basis: report item 1 on a non APRA-look through basis.

Item 1

Item 1.1 column 1 is a derived item. Report total investments in item 1.1 column 1 as the sum of:

·      the total value of directly held investments reported in item 2 column 4; and

·      the total value of indirectly held investments reported in item 4 column 3.

Item 1.1 column 2 is a derived item. Report the portion of total investments that is domicile type Australia domicile in item 1.1 column 2 as the sum of:

·      the total value of directly held investments reported in item 2 column 4 where domicile type in item 2 column 2 is reported as Australia domicile; and

·      the total value of indirectly held investments reported in item 4 column 3 where investment vehicle domicile type in item 4 column 2 is reported as Australia domicile.

Item 1.1.1 column 1 is a derived item. Report the portion of total investments that is invested via an individually managed mandate in item 1.1.1 column 1 as the sum of:

·      the total value of directly held investments which are individually managed mandates reported in item 2 column 6; and

·      the total value of indirectly held investments which are individually managed mandates reported in item 3 column 6.

Report the portion of total investments that is invested via an individually managed mandate and that is domicile type Australia domicile in item 1.1.1 column 2. This represents directly held investments which are individually managed mandates reported in item 2 column 6 where domicile type in item 2 column 2 is reported as Australia domicile and indirectly held investments which are individually managed mandates and the investment vehicle domicile type is Australia domicile.

Investments

Represents the purchase of a financial product or other item of value with an expectation of favourable future returns. Excludes: derivative assets, derivative liabilities and property, plant and equipment.

Individually managed mandate

Represents an asset portfolio managed by an investment manager in accordance with a formal agreement. Excludes: derivative assets and derivative liabilities.

Directly held

Represents investments made by the RSE in its own name. Includes: investments held by a custodian in trust for the RSE.

Indirectly held

Represents an investment made via an investment vehicle.

Directly held investments

Item 2 collects the asset class, asset domicile and asset listing type for directly held investments.

Reporting basis: report item 2 as at the end of the reporting period.

Unit of measurement: report column 4 and column 6 in thousands of dollars; report column 5 as a percentage.

APRA-look through: report item 2 on a non APRA-look through basis.

Item 2

Report directly held investments in item 2. Indirectly held investments must be reported in item 3.

Report, for each combination of asset class type, asset domicile type and asset listing type: the asset class type in column 1, the asset domicile type in column 2, the asset listing type in column 3, the value of the investment in column 4, the proportion of the investment which is currency hedged in column 5 and the portion of the investment which is invested via individually managed mandates in column 6.

The proportion of the investment which is currency hedged must be reported in item 2 column 5 at the same level that it is implemented. If an RSE licensee implements currency hedging at an investment option level, the same percentage must be reported for all the international asset classes within the option. Likewise, for RSE licensees that implement currency hedging at asset class level, reporting to APRA must reflect the currency hedging for that particular asset class.

Item 2.1 is a derived item. Report total value of directly held investments in item 2.1 column 4 as equal to the sum of values reported in item 2 column 4 and the total value of directly held investments which is invested via individually managed mandates in item 2.1 column 6 as the sum of the values reported in item 2 column 6.

The asset class types are: cash, fixed income, equity, property, infrastructure, commodities and other.

The asset domicile types are: Australia domicile, international domicile and not applicable. Where the asset domicile is not known, report asset domicile type as ‘not applicable’.

The asset listing types are: listed, unlisted and not applicable. Report asset listing type as ‘not applicable’ for asset class type cash. Where the asset listing is not known, report asset listing type as ‘not applicable’.

An investment must be reported as asset class type ‘other’ for reasons including, but not limited to, (a) an RSE licensee does not have sufficient information about an investment to classify it into the specified asset classes; or (b) an investment is in a different category than the combinations of: asset class type, asset domicile type and asset listing type.

Exclude from asset class type ‘other’ an investment in a multi-asset class investment vehicle including, but not limited to: cash management trust, life company guaranteed, life company investment linked, life company other, listed retail trust, pooled superannuation trust, unlisted retail trust and wholesale trust. Investments in these investment vehicles must be allocated to each asset class, asset domicile and asset listing type represented in the underlying investment.

Examples of other investments include: hedge funds, mezzanine debt, convertible debt.

Examples of listed equity investments include: common shares, preference shares. Exchange traded funds (ETFs) and listed trusts are to be allocated to the asset class of the underlying asset. Include equity ETFs, and listed equity trusts in listed equity. Exclude non-equity ETFs and listed trusts such as: fixed income ETFs, commodity ETFs, listed property trusts and listed infrastructure trusts.

Examples of unlisted equity investments include: venture capital, private equity.

Examples of commodities include: precious metals, agricultural natural resources, energy, livestock, commodity ETFs, exchange traded commodities (ETCs).


 

Currency hedged

Represents where derivative financial instruments are used to reduce the risk of adverse currency movements.

Indirectly held investments

Item 3 collects the asset class, asset domicile and asset listing type for indirectly held investments.

Reporting basis: report item 3 as at the end of the reporting period.

Unit of measurement: report column 4 and column 6 in thousands of dollars; report column 5 as a percentage.

APRA-look through: report item 3 on an APRA-look through basis, with reference to the investments underlying an investment vehicle. Investments in investment vehicles must be allocated to each combination of asset class type, asset domicile type and asset listing type represented in the underlying investments.

For example, for international equities and Australian fixed income held in the same Australian trust, report the asset class as ‘equities’ and the asset domicile type as ‘international’ for the international equities, and report the asset class as ‘fixed income’ and the asset domicile type as ‘Australia domicile’ for the Australian fixed income investment.

When reporting the relevant asset class of investments on a look through basis, an RSE licensee must seek information about the actual holdings of the first non-connected entity and identify the asset class(es) of these holdings. For example, the cash position in an equity portfolio must be reported as cash.

As look through reporting is not required for hedge fund investments, the information reported need only cover the investments held by the RSE. Hedge fund investments must be reported in the asset class other.

Item 3

Report indirectly held investments in item 3. Directly held investments must be reported in item 2.

For item 3 report, for each combination of asset class type, asset domicile type and asset listing type: the asset class type in column 1, the asset domicile type in column 2, the asset listing type in column 3, the value of the investment in column 4, the proportion of the investment which is currency hedged in column 5 and the portion of the investment which is invested via individually managed mandates in column 6.

When reporting indirectly held investments, apportion the value of the market exposure of any derivative contracts within the indirectly held investment to the asset class type(s) to which the derivatives relate. The apportionment will enable the net asset value of the indirectly held investment to be reported in item 3, column 4.

If derivative contracts are used within an indirectly held investment to hedge currency exposure, report the percentage of the indirectly held investment’s net asset exposure that is currency hedged (refer to item 3, column 5).

The proportion of the investment which is currency hedged must be reported in item 3, column 5 at the same level that it is implemented. If an RSE licensee implements currency hedging at an investment option level, the same percentage must be reported for all the international asset classes within the option. Likewise, for RSE licensees that implement currency hedging at asset class level, reporting to APRA must reflect currency hedging for that particular asset class.

When apportioning the value of indirectly held investments between asset class types, apportion using asset valuations based on Australian Accounting Standards. If this information is not available, apportion the value of indirectly held investments using the effective exposure of assets.

Item 3.1 is a derived item. Report total value of indirectly held investments in item 3.1 column 4 as equal to the sum of values reported in item 3 column 4 and the total value of indirectly held investments which is invested via individually managed mandates in item 3.1 column 6 as the sum of the values reported in item 3 column 6.

The asset class types are: cash, fixed income, equity, property, infrastructure, commodities and ‘other’.

The asset domicile types are: Australia domicile, international domicile and ‘not applicable’. Where the asset domicile is not known, report asset domicile type as ‘not applicable’. Asset domicile is the domicile of the assets identified when applying the look through requirements, not the domicile of the investment vehicle.

The asset listing types are: listed, unlisted and ‘not applicable’. Report asset listing type as ‘not applicable’ for asset class type cash. Where the asset listing is not known, report asset listing type as ‘not applicable’.

Investments in investment vehicles must be allocated to each combination of asset class type, asset domicile type and asset listing type represented in the underlying investments.

An investment must be reported as asset class type ‘other’ for reasons including, but not limited to, (a) an RSE licensee does not have sufficient information about an investment to classify it into the specified asset classes; or (b) an investment is in a different category than the combinations of: asset class type, domicile type and listing type.

Exclude from asset class type ‘other’ an investment in a multi-asset class investment vehicle including, but not limited to: cash management trust, life company guaranteed, life company investment linked, life company other, listed retail trust, pooled superannuation trust, unlisted retail trust and wholesale trust. Investments in these investment vehicles must be allocated to each asset class, domicile, currency and listing type represented in the underlying investment.

Examples of other investments include: hedge funds, mezzanine debt, convertible debt.

Examples of listed equity investments include: common shares, preference shares. ETFs and listed trusts are to be allocated to the asset class of the underlying asset. Include ETFs, and listed equity trusts in listed equity. Exclude non-equity ETFs and listed trusts such as: fixed income ETFs, commodity ETFs, listed property trusts and listed infrastructure trusts.

Examples of unlisted equity investments include: venture capital, private equity.

Examples of commodities include: precious metals, agricultural natural resources, energy, livestock, commodity ETFs, ETCs.

Effective exposure

Represents the sum of the value of all physical assets together with the equivalent asset position of the derivative instruments. The equivalent asset position of a derivative is the dollar amount of the underlying physical asset that needs to be held to generate the same return as holding the derivative.

Physical assets

Represents an item of economic, commercial or exchange value that has a tangible or material existence. Includes: precious metals, property, plant and equipment and oil.

Indirectly held investments by vehicle

Item 4 collects information about the investment vehicle type and investment vehicle domicile type for indirectly held investments.

Reporting basis: report item 4 as at the end of the reporting period.

Unit of measurement: report column 3 in thousands of dollars.

APRA-look through: report item 4 on a non APRA-look through basis.

Item 4

Report, for each combination of investment vehicle type and investment vehicle domicile type: the investment vehicle type in column 1, the investment vehicle domicile type in column 2 and the value of the investment in column 3.

Item 4.1 is a derived item. Report total indirectly held investments in item 4.1 as equal to the sum of values reported in item 4 column 3. Item 4.1 must equal the amount reported in item 3.1 column 4.

The investment vehicle types are: cash management trust, life company guaranteed, life company investment linked, life company other, listed retail trust, pooled superannuation trust, unlisted retail trust, wholesale trust and ‘other indirect investment’.

The investment vehicle domicile types are: Australia domicile, international domicile and ‘not applicable’. Where the investment vehicle domicile is not known, report investment vehicle domicile type as ‘not applicable’. Investment vehicle domicile is the domicile of the investment vehicle, not the domicile of the underlying assets in that vehicle.

Movements in directly held investments

Item 5 collects information about changes in value of directly held investments in each asset class, asset domicile and asset listing due to net transactions, income, gains and losses.

Reporting basis: report column 4, column 5 and column 7 with respect to transactions that occurred during the reporting period; report column 6, column 8 and column 9 as at the end of the reporting period.

Unit of measurement: report item 5 in thousands of dollars.

APRA-look through basis: report item 5 on a non APRA-look through basis.

Item 5

Report directly held investments in item 5. Indirectly held investments must be reported in item 6.

Report, for each combination of asset class type, asset domicile type and asset listing type: the asset class type in column 1, the asset domicile type in column 2, the asset listing type in column 3, net transactions in column 4, investment income in column 5, unrealised gains / losses in column 6, realised gains / losses in column 7, total gains / losses in column 8 and the portion of total gains / losses that are due to foreign exchange gains / losses in column 9.

Column 8 is a derived item. Report total gains / losses in column 8 as equal to the sum of unrealised gains / losses reported in column 6 and realised gains / losses reported in column 7.

Item 5.1 column 5 to column 9 inclusive are derived items. Report total movements in directly held investments in item 5.1 column 5 to column 9 inclusive as equal to the sum of values reported in the corresponding column in item 5.

The asset class types are: cash, fixed income, equity, property, infrastructure, commodities and ‘other’.

The asset domicile types are: Australia domicile, international domicile and ‘not applicable’. Where the asset domicile is not known, report asset domicile type as ‘not applicable’. Asset domicile is the domicile of the assets identified when applying the look through requirements, not the domicile of the investment vehicle.

The asset listing types are: listed, unlisted and ‘not applicable’. Report asset listing type as ‘not applicable’ for asset class type cash. Where the asset listing is not known, report asset listing type as ‘not applicable’.

An investment is to be reported as asset class type ‘other’ for reasons including, but not limited to, (a) an RSE licensee does not have sufficient information about an investment to classify it into one or more asset classes; or (b) an investment is in a different category than the combinations of: asset class type, asset domicile type and asset listing type.

Exclude investments from asset class type ‘other’ investments that are in multi-asset class investment vehicles such as pooled superannuation trust, cash management trust, listed retail trust, unlisted retail trust, unlisted wholesale trust, life company capital guaranteed, life company other and life company investment linked. Investments in these investment vehicles must be allocated to each asset class, asset domicile and asset listing type represented in the underlying investment.

Examples of other investments include: hedge funds, mezzanine debt, convertible debt.

Examples of listed equity investments include: common shares, preference shares. ETFs and listed trusts are to be allocated to the asset class of the underlying asset. Include equity ETFs, and listed equity trusts in listed equity. Exclude non-equity ETFs and listed trusts such as: fixed income ETFs, commodity ETFs, listed property trusts and listed infrastructure trusts.

Examples of unlisted equity investments include: venture capital, private equity.

Examples of commodities include: precious metals, agricultural natural resources, energy, livestock, commodity ETFs, ETCs.

Net transactions

Represents the net of all acquisition and disposal transactions, which involve the exchange of valuable consideration between counterparties.

Investment income

Represents gross revenue in the form of income or distributions from investments. Includes: interest, dividends, rental income, trust distributions.

Unrealised gains/losses

Represents changes in the value of investments as a result of remeasurement changes in the market value of investments. Includes: impairment charges and provisions.

Realised gains/losses

Represents changes in the value of investments as a result of closing or disposal of investments.

Foreign exchange gains/losses

Represents changes in the value of investments as a result of unrealised and realised changes in currency exchange rates which are used to translate or value investments.

Movements in indirectly held investments

Item 6 collects information about changes in value of indirectly held investments by asset class, domicile and listing type within the investment vehicle, due to net transactions, income, gains and losses.

Reporting basis: report column 4, column 5 and column 7 with respect to transactions that occurred during the reporting period; report column 6, column 8 and column 9 as at the end of the reporting period.

Unit of measurement: report item 6 in thousands of dollars.

APRA-look through basis: Report item 6 on an APRA-look through basis. Report column 4 with respect to transactions made by the SAF or SMADF in acquiring or disposing of units of the investment vehicle; report column 5 with respect to income received by the SAF or SMADF from the investment vehicle; report column 6 to column 9 inclusive with respect to information about gains and losses reported to the SAF or SMADF by the investment vehicle. Where movements of particular asset class type, asset domicile type and asset listing type represented in the underlying investments are known, report these in column 4 to column 9 inclusive. Where only the movements for the investment vehicle are known, allocate these movements to each combination of asset class type, asset domicile type and asset listing type represented in the underlying investments as reported in item 3.

Example: An investment in a wholesale trust is reported as 800,000 Australian domicile listed equity and 1,200,000 International domicile unlisted property in item 3 column 4. The wholesale trust reports to the RSE licensee that year-to-date investment income is 10,000,000, unrealised gains are 20,000,000 and realised losses are -5,000,000 with no foreign exchange gains/losses. The RSE had a net purchase of an additional 30,000,000 units in the trust. If the RSE licensee has no further information on the breakdown of these numbers to specific asset classes, report item 6 as:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Equity

Australia

Listed

12,000

4,000

8,000

-2,000

6,000

0

Property

International

Unlisted

18,000

6,000

12,000

-3,000

9,000

0

 

Item 6

Report indirectly held investments in item 6. Directly held investments must be reported in item 5.

For item 6 report, for each combination of asset class type, asset domicile type and asset listing type: the asset class type in column 1, the asset domicile type in column 2, the asset listing type in column 3, net transactions in column 4, investment income in column 5, unrealised gains / losses in column 6, realised gains / losses in column 7, total gains / losses in column 8 and the portion of total gains / losses that are due to foreign exchange gains / losses in column 9.

Column 8 is a derived item. Report total gains / losses in column 8 as equal to the sum of unrealised gains / losses reported in column 6 and realised gains / losses reported in column 7.

Item 6.1 column 5 to column 9 inclusive are derived items. Report total movements in indirectly held investments in item 6.1 as equal to the sum of values reported in the corresponding columns in item 6.

When reporting the movements of indirectly held investments, report the impact of indirectly held derivatives.

The asset class types are: cash, fixed income, equity, property, infrastructure, commodities and ‘other’.

The asset domicile types are: Australia domicile, international domicile and ‘not applicable’. Where the asset domicile is not known, report asset domicile type as ‘not applicable’. Asset domicile is the domicile of the asset identified when applying the look through requirements, not the domicile of the investment vehicle.

The asset listing types are: listed, unlisted and ‘not applicable’. Report asset listing type as ‘not applicable’ for asset class type cash. Where the asset listing is not known, report asset listing type as ‘not applicable’.

An investment is to be reported as asset class type ‘other’ for reasons including, but not limited to, (a) an RSE licensee does not have sufficient information about an investment to classify it into one or more asset classes; or (b) an investment is in a different category than the combinations of: asset class type, asset domicile type and asset listing type.

Exclude investments from asset class type ‘other’ investments that are in multi-asset class investment vehicles such as pooled superannuation trust, cash management trust, listed retail trust, unlisted retail trust, unlisted wholesale trust, life company capital guaranteed, life company other and life company investment linked. Investments in these investment vehicles must be allocated to each asset class, asset domicile and asset listing type represented in the underlying investment.

Examples of other investments include: hedge funds, mezzanine debt, convertible debt.

Examples of listed equity investments include: common shares, preference shares. ETFs and listed trusts are to be allocated to the asset class of the underlying asset. Include equity ETFs and listed equity trusts in listed equity. Exclude non-equity ETFs and listed trusts such as: fixed income ETFs, commodity ETFs, listed property trusts and listed infrastructure trusts.

Examples of unlisted equity investments include: venture capital, private equity.

Examples of commodities include: precious metals, agricultural natural resources, energy, livestock, commodity ETFs, exchange traded commodities (ETCs).

Directly held derivatives and securities lending programs

Item 7 and 8 collect information about holding of directly held derivatives and securities lending programs.

Reporting basis: report item 7 and item 8 as at the end of the reporting period.

APRA-look through basis: Report item 7 and item 8 on a non APRA-look through basis.

Item 7

If the SAF or SMADF has directly held investments in exchange traded derivatives or over the counter derivatives, report ‘yes’ in item 7; otherwise, report ‘no’.

Exchange traded derivative

Represents a standardised derivative contract transacted on a recognised stock exchange, subject to daily mark-to-market and margin settlements.

Over the counter derivative

Represents a derivative contract transacted between individual counterparties outside a recognised stock exchange, with contract details negotiated by those parties.

 

Item 8

If the SAF or SMADF participates in a securities lending program, report ‘yes’ in item 8; otherwise, report ‘no’.

Securities lending program

Represents an arrangement that involves the transfer of legal ownership of securities between the original holder and ‘borrower’, including the right for the ‘borrower’ to on-sell the securities.

Glossary of additional terms

Asset class type

Cash

Represents cash on hand and demand deposits, as well as cash equivalents. Cash equivalents represent short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Reference: Australian Accounting Standards.

Fixed income

Represents a loan, placement or debt security. Loans are financial assets that are created when a creditor lends funds directly to a debtor, and are evidenced by documents that are non-negotiable. Placements are liabilities of entities not described as authorised deposit-taking institutions, e.g. State treasuries. Debt securities are securities which represent borrowed funds which must be repaid by the issuer with defined terms including the notional amount (amount borrowed), an identifiable return and maturity/renewal date. Includes: short and long-term debt securities.

Equity

Represents an ownership interest in a business, trust or partnership. Includes: common shares, preference shares, listed investment companies and units. Excludes: units in property trusts, units in infrastructure trusts.

Property

Represents an investment in real estate where the earnings and capital value are dependent on cash flows generated by the property through sale or rental income.

Infrastructure

Represents the basic physical systems of a country, state or region including transportation, communication, utilities, and public institutions.

Commodities

Represents natural resources that are either grown or extracted from the ground and are often used as inputs in the production of other goods or services.

Domicile type

Australian domicile

Represents investments issued in Australia.

International domicile

Represents investments issued outside Australia.

Asset listing type

Listed

Represents a financial instrument that is traded through an Australian or international stock exchange.

Unlisted

Represents a financial instrument that is not traded through an Australian or international stock exchange.

Investment vehicles

Cash management trust

Represents a unit trust which is governed by a trust deed which generally confines its investments (as authorised by the trust deed) to financial securities available through the short-term money market. Cash management trusts issue units in the trust that are redeemable by the unit holder on demand.

Life company guaranteed

Represents the provision of benefits payable under an investment account contract, where an investment account contract is a contract within the meaning given in s. 14(2) of the Life Insurance Act 1995.

Life company investment linked

Represents the provision of benefits payable under an investment-linked contract, where an investment-linked contract is a contract within the meaning given in s. 14(4) of the Life Insurance Act 1995.

Life company other

Represents any investment in a life company that does not otherwise fall into the definition of ‘life company guaranteed’ or ‘life company investment linked’.

Listed retail trust

Represents a collective investment vehicle with units on issue listed on an Australian or an international stock exchange which provides exposure to a diversified portfolio of investments and can be accessed by retail clients, at low entry levels, as defined in the Corporations Act 2001.

Pooled superannuation trust

Represents a type of collective investment trust where an investment manager invests the assets of superannuation funds, approved deposit funds and other pooled superannuation trusts. Excludes: unitised investments with life companies where the original or primary investment is an insurance or investment policy.

Unlisted retail trust

Represents a collective investment vehicle that is not listed on an Australian or international stock exchange, provides exposure to a diversified portfolio of investments and can be accessed by retail clients, at low entry levels, as defined in the Corporations Act 2001.

Wholesale trust

Represents a collective investment vehicle that provides exposure to a diversified portfolio of investments and can be accessed by wholesale clients only, at high entry levels, as defined in the Corporations Act 2001.

Interpretation

For the purposes of these instructions:

·                the most proximate investment means the closest investment, in the relevant chain of investments, to the ultimate investment[5];

·                person connected with an RSE licensee has the meaning in subsection 13(4C) of the Financial Sector (Collection of Data) Act 2001, namely:

(a)           a related body corporate of the RSE licensee; or

(b)          a custodian in relation to assets, or assets derived from assets, of the RSE licensee's RSEs, and in relation to the RSE licensee or a related body corporate of the RSE licensee; or

(c)           a person who, under a contract or other arrangement with:

(i)   the RSE licensee; or

(ii) a related body corporate of the RSE licensee; or

(iii)        a custodian in relation to assets, or assets derived from assets, of the RSE licensee's RSEs, and in relation to the RSE licensee or a related body corporate of the RSE licensee;

invests assets, or assets derived from assets, of the RSE licensee's RSEs;

·                RSE means a registrable superannuation entity as defined in section 10(1) of the SIS Act;

·                RSE licensee has the meaning given in section 10(1) of the SIS Act;

·                single member approved deposit fund (SMADF) means a superannuation entity that is an approved deposit fund, within the meaning of section 10(1) of the SIS Act, that has only one member;

·                SIS Act means Superannuation Industry (Supervision) Act 1993;

·                small APRA fund (SAF) means a superannuation entity that is a regulated superannuation fund, within the meaning given in section 10(1) of the SIS Act, which has fewer than five members; and

·                ultimate investment means an investment of assets, or assets derived from assets, of an RSE of an RSE licensee excluding an investment in an interposed entity.

 

 



[1]           For the purposes of this Reporting Standard, an ‘RSE licensee’s business operations’ includes all activities as an RSE licensee (including the activities of each RSE of which it is the licensee), and all other activities of the RSE licensee to the extent that they are relevant to, or may impact on, its activities as an RSE licensee. For the avoidance of doubt, if the RSE licensee is trustee of more than one SAF or SMADF, the RSE licensee must separately provide the information required by the form for each SAF or SMADF within its business operations. An RSE licensee that does not have any SAFs or SMADFs within its business operations is not required to provide information under this Reporting Standard.

[2]           Refer also to Prudential Standard SPS 310 Audit and Related Matters (SPS 310).

[3]           Refer to Prudential Standard SPS 510 Governance.

[4]          Subsection 13(4B) of the Financial Sector (Collection of Data) Act 2001 means that a contract between the RSE licensee or a person connected with the RSE licensee such as a related body corporate or relevant custodian (the first party), and a person connected with the RSE licensee (the second party), under which assets or assets derived from assets of the registrable superannuation entity are invested, is taken to include (1) a term requiring the first party to notify the second party that the assets are or are derived from a registrable superannuation entity, and (2) a term requiring the second party, if so notified, to provide the information required by this reporting standard of which they are aware.

[5]         For example, if an RSE licensee invests in a managed investment scheme, the responsible entity of which is unrelated to the RSE licensee, the responsible entity will still be a person connected with the RSE licensee, under paragraph (c) of the definition of that term. If the managed investment scheme in turn invests in a private equity vehicle, the trustee of which is not in any way related to the RSE licensee, the trustee of the private equity vehicle will not be a person connected with the RSE licensee. If the private equity vehicle has invested exclusively in shares, the shares will be the ultimate investment. The most proximate investment of a person connected with the RSE licensee will be the managed investment scheme’s investment in the private equity vehicle. Accordingly, the managed investment scheme’s investment in the private equity vehicle must be reported.