Reporting Standard SRS 532.0
Investment Exposure Concentrations
Objective of this Reporting Standard
This Reporting Standard sets out the requirements for the provision of information to APRA relating to movements in the investments of a registrable superannuation entity.
It includes Form SRF 532.0 Investment Exposure Concentrations and associated specific instructions and must be read in conjunction with Prudential Standard SPS 530 Investment Governance.
Authority
- This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
2. Information collected in Form SRF 532.0 Investment Exposure Concentrations (SRF 532.0) is used by APRA for the purposes of prudential supervision and publication, including assessing compliance with Prudential Standard SPS 530 Investment Governance. It may also be used by the Australian Bureau of Statistics.
Application and commencement
3. This Reporting Standard applies to each registrable superannuation entity (RSE) licensee (RSE licensee) in respect of each RSE, defined benefit RSE, pooled superannuation trust (PST) and eligible rollover fund (ERF) within its business operations.[1]
4. This Reporting Standard applies for reporting periods ending on or after 1 July 2016.
Information required
5. An RSE licensee to which this Reporting Standard applies must provide APRA with the information required by SRF 532.0 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 quarter based on the year of income of each RSE, defined benefit RSE, PST or ERF within its business operations.
8. If, having regard to the particular circumstances of an RSE, defined benefit RSE, PST or ERF, 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 RSE, defined benefit RSE, PST or ERF.
9. The information required by this Reporting Standard must be provided to APRA:
(a) in the case of quarterly information:
(i) for reporting periods ending on or after 1 July 2016 but before 1 July 2017 – within 35 calendar days after the end of the quarter to which the information relates; and
(ii) for reporting periods ending on or after 1 July 2017 – within 28 calendar days after the end of the quarter 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 RSEs, defined benefit RSEs, PSTs or ERFs 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 RSE, defined benefit RSE, PST or ERF to which the information relates. 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 532.0 in relation to that RSE licensee or one or more RSEs, defined benefit RSEs, PSTs or ERFs 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;
Chief Financial Officer means the chief financial officer of the RSE licensee, by whatever name called;
defined benefit RSE means an RSE that is a defined benefit fund within the meaning given in Prudential Standard SPS 160 Defined Benefit Matters;
due date means the relevant date under paragraph 9 or, if applicable, paragraph 10;
eligible rollover fund (ERF) has the meaning given in section 10(1) of the SIS Act;
pooled superannuation trust (PST) has the meaning given in section 10(1) of the SIS Act;
reporting period means a period mentioned in paragraph 7 or, if applicable, paragraph 8;
RSE means a registrable superannuation entity as defined in section 10(1) of the SIS Act that is not a defined benefit RSE, PST, ERF, small APRA fund or single member approved deposit fund;
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;
SIS Act means Superannuation Industry (Supervision) Act 1993; and
year of income has the meaning given in section 10(1) of the SIS Act.
Reporting Form SRF 532.0
Investment Exposure Concentrations
Instructions
These instructions assist completion of Reporting Form SRF 532.0 Investment Exposure Concentrations (SRF 532.0). SRF 532.0 collects information on investment exposure concentrations of an RSE. Information reported in SRF 532.0 is required primarily for prudential and publication purposes. Information reported on SRF 532.0 is also required for the purposes of the Australian Bureau of Statistics.
Reporting level
SRF 532.0 must be completed for each RSE, defined benefit RSE, pooled superannuation trust (PST) and eligible rollover fund (ERF).
Reporting basis and unit of measurement
Report all items on SRF 532.0 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 is expected to use the same exchange rates across all returns to APRA.
Note: for the major currencies, an RSE licensee may 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 532.0 must be reported as at the end of the reporting period or with respect to transactions that occurred during the reporting period. Report information with respect to transactions that occurred during the reporting period on a year to date basis, rather than for the individual quarter alone.
Items on SRF 532.0 are to be reported as thousands of dollars, percentages and dates. Report percentages as a whole number to one decimal place, i.e. 10 per cent is to be reported as 10.0. Report dates as DD/MM/YYYY.
Certain items in SRF 532.0 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.
These instructions specify the unit of measurement and APRA-look through basis that applies to each item.
Specific instructions
Report large exposures only on SRF 532.0. A large exposure means an investment that represents at least one per cent of the total investments of the RSE as reported under Reporting Standard SRS 530.0 Investments.
Terms highlighted in bold italics indicate that the definition is provided in these instructions. Additional definitions are provided at the end of these instructions.
Where the relevant organisation does not have an ABN, leave the ABN field blank e.g. where the organisation is domiciled in an overseas jurisdiction.
Directly held investments – large exposures
Item 1 collects large exposures that are directly held.
Unit of measurement: report item 1 column 2 and item 1.1 in thousands of dollars.
APRA-look through basis: report item 1 on a non APRA-look through basis.
Item 1 | Report each directly held large exposure as a separate line in item 1. Report indirectly held large exposures in item 2. For each directly held large exposure report the name of the investment in column 1, the value of the investment in column 2, the asset class type in column 3, the asset domicile type in column 4, the asset listing type in column 5, the fixed income type in column 6, the fixed income currency type in column 7, the counterparty credit rating in column 8, the fixed income term in column 9, the mortgage type in column 10, international economy type in column 11 and the exposure type in column 12. Item 1.1 is a derived item. Report total directly held large exposures in item 1.1 as equal to the sum of values reported in item 1 column 2. 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’. The fixed income types are: Government debt, non Government debt, mortgage debt, credit and ‘not applicable’. Fixed income types are only applicable to the asset class type fixed income. For asset class type fixed income, where the fixed income type is not known, report fixed income type as ‘not applicable’. The fixed income currency types are: Australian dollars, other currency and ‘not applicable’. Fixed income currency types are only applicable to the asset class type fixed income. For asset class type fixed income, where the fixed income currency is not known, report fixed income currency as ‘not applicable’. The fixed income terms are: short term, long term and ‘not applicable’. Fixed income terms are only applicable to the asset class type fixed income. For asset class type fixed income, where the fixed income term is not known, report fixed income term as ‘not applicable’. The mortgage types are: residential mortgage, commercial mortgage and ‘not applicable’. Mortgage types are only applicable to the fixed income type mortgage debt. For the fixed income type mortgage debt, where the mortgage type is not known, report mortgage type as ‘not applicable’. The international economy types are: emerging markets, developed markets and ‘not applicable’. International economy types are only applicable to the asset domicile type international domicile. For the asset domicile type international domicile, where the international economy type is not known, report international economy type as ‘not applicable’. The counterparty credit ratings are: grade 1, grade 2, grade 3, grade 4, grade 5, grade 6, grade 7 and ‘not applicable’. The counterparty credit ratings are only applicable to the asset class type fixed income. For asset class type fixed income, where the counterparty credit rating is not known, report counterparty credit rating as ‘not applicable’. The exposure types are: ‘MySuper product’ if any MySuper product in the RSE are exposed to the investment; ‘defined benefit interests’ if any defined benefit interests in the RSE are exposed to the investment, ‘MySuper product and defined benefit interests’ if both MySuper product and defined benefit interests in the RSE are exposed to the investment and ‘neither’ if neither MySuper product or defined benefit interests in the RSE are exposed to the investment. 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 relevant combinations of: asset class type, asset domicile type, asset listing type, fixed income type, fixed income currency, fixed income term, mortgage type, international economy type and counterparty credit rating. Exclude from asset class type ‘other’ investments in multi-asset class investment vehicles such as 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, asset listing, fixed income type, fixed income currency, fixed income term, mortgage and international economy 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). |
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. |
MySuper product | Represents a MySuper product that has been authorised by APRA under s. 29T, s. 29TA or s. 29TB of the SIS Act. |
Defined benefit interests | Represents a member interest that is a defined benefit interest or a defined benefit pension. Reference: SIS Regulations, r. 1.03AA, r. 9.04E. |
Indirectly held investments – large exposures
Item 2 collects indirectly-held large exposures.
Unit of measurement: report item 2.3 column 4 as a date; report item 2.1 column 10 and item 2.2 as thousands of dollars; report item 2.1 column 11 as a percentage.
Look through basis: report item 2.1 column 1 to column 4 inclusive, and, item 2.3 on a non APRA-look through basis (i.e. report in respect of an investment vehicle that the RSE invests in); report item 2.1 column 5 to column 10 inclusive on an APRA-look through basis (i.e. report on the investments underlying an investment vehicle as illustrated in Figure 1 below).
Item 2 | Report each indirectly held large exposure as a separate line in item 2. For each indirectly held large exposure, report by asset class in item 2.1 and by MySuper products and defined benefits in item 2.3. For each indirectly held large exposure, report the same name and ABN of the investment vehicle in item 2.1 column 1 and column 2, and in item 2.3 column 1 and column 2, to link asset class and MySuper products and defined benefits. Where an indirectly held large exposure is invested in multiple asset class types, asset domicile types, asset listing types, fixed income types and currencies report the indirectly held large exposure over multiple lines in item 2.1 with each combination of asset class type, asset domicile type, asset listing type, fixed income type and currency relating to the investment vehicle reported on a separate line. Only one line needs to be reported per investment vehicle in item 2.3. For each combination of asset class type, asset domicile type, asset listing type, fixed income type and fixed income currency for each indirectly held large exposure reported in item 2.1: - report the name of the investment vehicle in column 1 and the ABN of the investment vehicle in column 2. If the investment vehicle domicile is international domicile and thus does not have an ABN, leave column 2 blank;
- report the investment vehicle type in column 3 and the investment vehicle domicile type in column 4;
- report the asset class type in column 5, asset domicile type in column 6, asset listing type in column 7, fixed income type in column 8 and fixed income currency type in column 9;
- report the value of the investment in column 10; and
- if gearing is allowed in the investment vehicle, report the proportion of the investment value reported in column 10 that is geared in column 11.
Item 2.2 is a derived item. Report total indirectly held large exposures in item 2.2 as equal to the sum of values reported in item 2.1 column 10. For each indirectly held large exposure reported in item 2.3: - report the name of the investment vehicle in column 1 and the ABN of the investment vehicle in column 2. If the investment vehicle domicile is international domicile and thus does not have an ABN, leave column 2 blank;
- if the investment vehicle is an associate of the RSE licensee or RSE, report ‘yes’ in column 3; otherwise, report ‘no’;
- report the review date of the investment vehicle in column 4; and
- report the exposure type in column 5.
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 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 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’. The fixed income types are: Government debt, non Government debt, mortgage debt, credit and ‘not applicable’. The fixed income types are only applicable to investments of asset class type fixed income. For asset class type fixed income, where the fixed income type is not known, report fixed income type as ‘not applicable’. The fixed income currency types are: Australian dollars, other currency and ‘not applicable’. The fixed income currency types are only applicable to investments of asset class type fixed income. For asset class type fixed income, where the fixed income currency is not known, report fixed income currency as ‘not applicable’. The exposure types are: ‘MySuper product’ if any MySuper product in the RSE are exposed to the investment; ‘defined benefit interests’ if any defined benefit interests in the RSE are exposed to the investment, ‘MySuper product and defined benefit interests’ if both MySuper product and defined benefit interests in the RSE are exposed to the investment and ‘neither’ if neither MySuper product or defined benefit interests in the RSE are exposed to the investment. |
ABN | Represents a unique public identifier issued to an entity registered in the Australian Business Register to be used in dealings with government. A company registered under the Corporations Act 2001 or a business entity carrying on an enterprise in Australia is entitled to an ABN. |
Associate | Represents an associate within the meaning given in s. 12 of the SIS Act. |
Review date | Represents the date on which the RSE licensee last reviewed the investment vehicle. Reference: Prudential Standard SPS 530 Investment Governance. |
Gearing | Represents borrowings for the purpose of boosting the return on capital and income via additional investment. Includes: derivative securities which achieve a gearing effect. |
Indirectly held investments - exposure concentrations in underlying investments
Item 3 collects indirectly held investments via investment vehicles that are connected to the RSE licensee or RSE and the underlying investment vehicles of those investments. Information is only collected where the underlying investment represents at least one per cent of the total investments of the RSE. This is referred to as APRA-look through basis reporting on investment vehicles; an illustration of this is provided below.
Item 3 column 1 to column 3 inclusive collects the indirectly-held investment. Item 3 column 4 to column 9 inclusive collects the underlying investment.
An underlying investment vehicle may invest in another investment vehicle. Where this investment in another investment vehicle represents at least one per cent of the total investments of the RSE, treat the underlying investment as an indirectly-held investment and report the information on a new line in item 3.
Repeat this reporting process for each indirectly-held investment with a connected investment vehicle which has an underlying investment that represents at least one per cent of the total investments of the RSE.
Figure 1: Illustration of APRA-look through basis
The diagram below provides an illustration of APRA-look through basis reporting to assist with reporting in item 3. The diagram portrays the RSE investing in Investment Vehicle A which is connected to the RSE licensee/RSE. Investment Vehicle A invests some or all of the RSE’s investment with Investment Vehicle B which is also connected to the RSE licensee/RSE. Investment Vehicle B invests some or all of the RSE’s investment with Investment Vehicle C which is not connected to the RSE licensee/RSE. The investment in Investment Vehicle A, Investment Vehicle B and Investment Vehicle C must be reported in item 3. Further reporting regarding the investments underlying Investment Vehicle C is not required.
Unit of measurement: report item 3 column 3 as a whole number and item 3 column 7 as thousands of dollars.
APRA-look through basis: report item 3 on an APRA-look through basis.
Item 3 | Where the investment by Investment Vehicle A (A) in Investment Vehicle B (B) represents at least one per cent of the total investments of the RSE, report A as the indirectly-held investment in item 3 and B as the underlying investment in item 3, in the same row. Report the name of A in column 1, the ABN of A in column 2 and the number of interposed associates between the RSE and A in column 3. Report the name of B in column 4, the ABN of B in column 5, the investment vehicle type of B in column 6, the value of the investment in B in column 7. If B invests in other investment vehicles, report ‘yes’ in item 3 column 8; otherwise, report ‘no’. If B is connected to the RSE licensee or RSE, report ‘yes’ in item 3 column 9; otherwise, report ‘no’. As ‘yes’ is reported in item 3 column 8 and column 9 where the investment by B in Investment Vehicle C (C) represents at least one per cent of the total investments of the RSE, also report B as the indirectly-held investment and C as the underlying investment, in a new line in item 3. In this example, C is not connected to the RSE licensee/RSE and therefore no further information is collected. 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’. |
Interposed associate | Represents a connected entity that has been engaged to manage some or all of the investments of the RSE that invests in other investment vehicles. Exclude: an investment vehicle that holds the RSE's investment. Reference: SIS Act, s. 12. |
Large exposures by country of investment
Item 4 and item 5 collect investments by the geographic location in which the investment is held.
Directly held investments - large exposures by country of investment
Item 4 collects information about directly held investments by country of the investment.
Where the aggregate value of directly held investments in a country is less than one per cent of the RSE’s total investments, the country does not need to be reported. Appendix 2 contains a list of countries with information on the extra jurisdictions/territories covered by each country name.
Unit of measurement: report item 4 column 2 as thousands of dollars.
APRA-look through basis: report item 4 on a non APRA-look through basis.
Item 4 | For each country of investment where the aggregate value of directly held investments in that country is greater than or equal to one per cent of the total investments of the RSE, report the country in column 1 and aggregate value of directly held investments in column 2. Report each country on a separate line. See Appendix 2 for a listing of countries. |
Indirectly held investments - large exposures by international exposure
Item 5 collects information about indirectly held investments according to the domicile of the investment vehicle, information regarding whether the investment vehicle is an associate of the RSE licensee or RSE and the region of international exposure.
The unit of measurement for item 5 is the combination of: domicile of investment vehicle, associate, international region exposure and country.
Where the aggregate value of indirectly held investments with associates of the RSE licensee or RSE, by domicile of investment vehicle, international region exposure and country is less than one per cent of the total investments of the RSE, the investment does not need to be reported.
Where the aggregate value of indirectly held investments with investment vehicles that are not associates of the RSE licensee or RSE, by domicile of investment vehicle, international region exposure and country is less than one per cent of the total investments of the RSE, the investment does not need to be reported.
Example: two non-connected investment vehicles domiciled in the U.S.A. that invest in Asia with an aggregate value of 6 per cent of the RSE’s total investments, are to be aggregated and reported in a single line.
Example: two connected investment vehicles domiciled in Brazil that invest in the Americas with an aggregate value of 0.75 per cent of the RSE’s total investments do not need to be reported.
Unit of measurement: report item 5 column 5 as thousands of dollars.
APRA-look through basis: report item 5 column 1 and column 2 on a non APRA-look through basis; report item 5 column 3, column 4 and column 5 on an APRA-look through basis.
Item 5 | Report each combination of domicile of investment vehicle, associate, international region exposure and country that has an aggregate value greater than or equal to one per cent of the total investments of the RSE on a separate line in item 5. Report the domicile of the investment vehicle in column 1. If the investment vehicle is an associate of the RSE licensee or RSE, report ‘yes’; otherwise, report ‘no’ in column 2. Report the international region exposure in column 3, the country in column 4 and the aggregate value of the investment in column 5. The international region exposures are: global, Americas region, Asia region, Europe region¸ Mid East / Africa region, Oceania region and individual country. Report ‘not applicable’ for country in column 4 if the international region exposure reported in column 3 is global, Americas region, Asia region, Europe region¸ Mid East / Africa region or Oceania region. |
Domicile of investment vehicle | Represents the location of the investment vehicle. The criterion for location is whether an investment vehicle is permanently located, physically and/or by way of law or registration, inside or outside a country's borders. |
Large exposures in unlisted investments
Item 6 collects additional information about each equity security holding in an unlisted corporation, unlisted private trust, limited partnership or joint venture that represents more than one per cent of total investments.
Reporting basis: report column 6 as at the date the investment was made; report column 8 with respect to transactions that occurred during the reporting period; report column 5, column 7, column 9 and column 10 as at the end of the reporting period. If investments have been made at multiple dates, report column 6 as the sum across all of the dates investments were made.
Unit of measurement: report column 5 as a percentage; report column 6 to column 9 inclusive as thousands of dollars.
APRA-look through basis: report item 6 on a non APRA-look through basis.
Item 6 | Report each directly held equity investment in an unlisted corporation, unlisted private trust, limited partnership or joint venture that represents more than one per cent of total investments of the RSE as a separate line in item 6. For each investment, report the unlisted entity type in column 1, the name of the entity in column 2 and the ABN of the entity in column 3. If the entity is an associate of the RSE licensee or RSE, report ‘yes’ in column 4; otherwise, report ‘no’. Report the ownership percentage in the entity in column 5, the initial cost of the investment in column 6, the value of the investment in column 7, distributions from the entity that are recognised as income by the RSE in column 8, the value of commitments outstanding in column 9 and the exposure type in column 10. Where the initial cost involves multiple acquisitions, report the total of the cost of each acquisition. The unlisted entity types are: unlisted corporation, unlisted private trust, limited partnership, joint venture and other. The exposure types are: ‘MySuper product’ if any MySuper product in the RSE are exposed to the investment; ‘defined benefit interests’ if any defined benefit interests in the RSE are exposed to the investment, ‘MySuper product and defined benefit interests’ if both MySuper product and defined benefit interests in the RSE are exposed to the investment and ‘neither’ if neither MySuper product or defined benefit interests in the RSE are exposed to the investment. |
Ownership percentage | Represents the portion of ownership held by the RSE in the investment. |
Initial cost | Represents the amount at which the investment was first made. |
Distributions | Represents gross revenue in the form of distributions received in lieu of the investment. Reference: Australian Accounting Standards. |
Commitments outstanding | Represents the amount of legally enforceable contractual commitments to invest additional funds in the asset at any time in the future. |
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 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 financial instrument that is traded through an Australian or international stock exchange. |
Unlisted | Represents financial instrument that is not traded through an Australian or international stock exchange. |
Fixed income type
Government debt | Represents a debt security issued by a federal, state, territory or local governments, or corporations owned or controlled by a federal, state, territory or local government. |
Non Government debt | Represents a debt security issued by a corporation that is not owned or controlled by a federal, state, territory or local government. |
Mortgage debt | Represents a debt security where specific mortgage assets are provided as collateral. |
Credit | Represents a loan, a placement or a debt security where specific non-mortgage assets are provided as collateral. |
Fixed income term
Short term | Represents a security with an original term to maturity of one year or less. |
Long term | Represents a security with an original term to maturity of more than one year. |
Fixed income currency type
Australian dollars | Represents an investment denominated in Australian dollars. |
Other currency | Represents an investment denominated in a currency other than Australian dollars. |
Mortgage type
Residential mortgage | Represents loans for the construction or purchase of residential dwellings. |
Commercial mortgage | Represents loans for the construction or purchase of commercial buildings or other business real estate. |
International economy type
Emerging markets | Represents developing countries and transition economies as defined by the United Nations Conference on Trade and Development under the economic groupings classification. |
Developed markets | Represents developed economies as defined by the United Nations conference on Trade and Development under the economic groupings classification. Excludes: Australia. |
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. |
Counterparty credit ratings
The counterparty grades are used in classifying the credit rating of debt investments. An RSE licensee must directly request credit grades from the counterparty or investment manager, and must not rely on consumer rating agencies which rate collective investments.
Where an RSE has investments with multiple ratings from two or more rating agencies, the RSE licensee must consistently apply the lowest rating of a single agency whenever the individual ratings conflict.
The counterparty credit ratings used in these instructions are generally consistent with long term rating/debt securities. Where an RSE invests in counterparties/securities that have only been issued with a short term counterparty credit rating, the RSE licensee must use the most closely matched counterparty credit rating.
Grade 1 | Represents a rating of Standard & Poor's AAA, Moody's Aaa, AM Best aaa, Fitch AAA |
Grade 2 | Represents a rating of Standard & Poor's AA+, AA, AA-; Moody's Aa1, Aa2, Aa3; AM Best aa+, aa, aa-; Fitch AA+, AA, AA |
Grade 3 | Represents a rating of Standard & Poor's A+, A, A-; Moody's A1, A2, A3; AM Best a+, a, a-; Fitch A+, A, A- |
Grade 4 | Represents a rating of Standard & Poor's BBB+, BBB, BBB-; Moody's Baa1, Baa2, Baa3; AM Best bbb+, bbb, bbb-; Fitch BBB+, BBB, BBB- |
Grade 5 | Represents a rating of Standard & Poors BB+, BB, BB-; Moodys Ba1, Ba2, Ba3; AM Best bb+, bb, bb-; Fitch BB+, BB, BB- |
Grade 6 | Represents a rating of Standard & Poor's B+, B, B-; Moody’s B1, B2, B3; AM Best b+, b, b-; Fitch B+, B, B- |
Grade 7 | Represents a rating of Standard & Poor's CCC or below; Moody’s Caa or below; AM Best b or below; Fitch CCC or below; unrated. |
International exposure type
Global | Represents countries located in more than one geographic region. |
Americas region | Represents countries located in North America, Central America and South America. |
Asia region | Represents countries located in Asia. |
Europe region | Represents countries located in Europe. Includes: Eastern Europe. |
Mid East / Africa region | Represents countries located in the Middle East and Africa. |
Oceania region | Represents countries located in the Pacific Ocean region. Excludes: Asia region and Americas region. |
Unlisted entity type
Unlisted corporation | Represents a corporation whose equity shares are not quoted on a stock exchange. |
Unlisted private trust | Represents a collective investment vehicle with units on issue which is not traded on an Australian or an international stock exchange, which is not offered to the public and where there are no more than 50 investors. |
Limited partnership | Represents an association of persons, other than a company, carrying on business as partners or in receipt of income jointly, where the liability of at least one of those persons is limited, or an association of persons with legal personality to carry on activities that are carried on by a body of that kind. |
Joint venture | Represents a contractual arrangement of the RSE licensee whereby two or more parties undertake an economic activity that is subject to joint control or joint arrangement (an arrangement of which two or more parties have joint control). |
Interpretation
For the purposes of these instructions:
- defined benefit RSE means an RSE that is a defined benefit fund within the meaning given in Prudential Standard SPS 160 Defined Benefit Matters;
- eligible rollover fund (ERF) has the meaning given in section 10(1) of the SIS Act;
- large exposure means an investment that represents at least one per cent of the investments of the RSE;
- the most proximate investment means the closest investment, in the relevant chain of investments, to the ultimate investment;
- 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;
- pooled superannuation trust (PST) has the meaning given in section 10(1) of the SIS Act;
- RSE means a registrable superannuation entity as defined in section 10(1) of the SIS Act that is not a defined benefit RSE, PST, ERF, small APRA fund or single member approved deposit fund[7];
- RSE licensee has the meaning given in section 10(1) of the SIS Act;
- SIS Act means Superannuation Industry (Supervision) Act 1993;
- SIS Regulations means Superannuation Industry (Supervision) Regulations 1994;
- 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;
- underlying investment means an investment in an underlying investment vehicle; and
- underlying investment vehicle means an investment vehicle in which the assets of an RSE are invested, where the investment is made via another investment vehicle.
Appendix 1: Illustrative example for completion of item 3
3. | Indirectly-held investment or multi-layer indirectly-held investment | Underlying investment |
| Indirectly held investment vehicle name | Indirectly held investment vehicle ABN | Interposed associates | Underlying investment vehicle name | Underlying investment vehicle ABN | Type of investment vehicle | Underlying investment value | Invests in investment vehicles? | Associate |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
| | | | | | | | | |
| Vehicle 1 | XXX | 0 | Vehicle 2A | YYY | Wholesale trust | 29500 | Yes | Yes |
| Vehicle 1 | XXX | 0 | Vehicle 2B | ZZZ | Wholesale trust | 70000 | Yes | No |
| Vehicle 2A | YYY | 1 | Vehicle 3A | AAA | Listed retail trust | 28500 | No | Yes |
| | | | | | | | | | | |
As ‘yes’ is reported in column 8 and column 9 Vehicle 2A, Vehicle 2A must be treated as if it were itself an indirectly-held investment of the RSE. Where the underlying investments of vehicle 2A represent at least one per cent of the assets of the RSE, report this information in a new line in item 3.
As ‘no’ is reported in column 9 for Vehicle 2B, no further look-through reporting is required on 4A.
Vehicle 2C does not need to be reported because the investments are less than one per cent of the investments of the RSE.
As ‘no’ is reported in column 8 for Vehicle 3A, no further look-through reporting is required on the ‘direct investment’.
Vehicle 3B and 3C do not need to be reported because the investments are less than one per cent of the investments of the RSE.
