The following provides guidelines to facilitate in the specific disclosure of information requested by this form for the reporting insurer and where applicable the consolidated insurance group.
Table 1
List all investments of the reporting insurer in investment vehicles, which will include holdings in the following:
individually managed mandates;
units in wholesale trusts;
units in retail/public offer unit trusts;
managed investment schemes; and
cash management trusts.
Include holdings in listed and unlisted trusts and related entities of the reporting insurer.
Exception:
If the units are held in a related/controlled entity of the insurer (i.e. a dedicated investment management entity for the Insurer), the Insurer may apply to APRA to have such entities approved as part of its Extended Licensed Entity (ELE). This is set out in GGN 110.4 Investment Risk Capital Charge paragraphs 6 – 9. Once approved by APRA this will allow the insurer to look through the legal structures involved and to consolidate the balance sheet of the related entity with its own for the purposes of determining the Investment Risk Capital Charge. If the insurer has an approved ELE, the underlying individual securities/investments supporting the units held by the licensed insurer are to be disclosed in the investment returns.
Name and ABN
Use the full name of the investment vehicle as identified in the investment deed. Also disclose the Australian Business Number (ABN). Where there is no identifier associated with the investment vehicle leave this field blank.
Related Party
Disclose “yes” or “no” if the investment vehicle is a related party of the reporting insurer. For this purpose related entity has the meaning as set out above.
Closing Balance
Report the value of the holdings as at the end of the reporting date for each investment vehicle.
Table 2. Aggregate holdings in indirect investment vehicles classified into the following:
Where the reporting Insurer has disclosed investments in table 1 in the form, the aggregate holdings must be disclosed as required by this table.
Listed trusts
Disclose the aggregate value of the holding that constitutes listed units.
Note: do not include holdings of cash management trusts. These are to be disclosed on the form under point 3 to 6 (see below).
Unlisted trusts
Disclose the aggregate value of the holding that constitutes unlisted units.
Note: do not include holdings of cash management trusts. These are to be disclosed on the form under point 3 (see below).
Cash Management Trusts with Prudential Rating of Grade 1 or 2
List the aggregate value of holdings in investment vehicles, which constitute cash management trusts that have a rating of grade 1 or 2. Refer to Attachment 1 and 2 of GGN 110.4 Investment Risk Capital Charge for detail on counterparty rating grades.
Cash Management Trusts with Prudential Rating of Grade 3
List the aggregate value of holdings in investment vehicles, which constitute cash management trusts that have a rating of grade 3. Refer to Attachment 1 and 2 of GGN 110.4 Investment Risk Capital Charge for detail on counterparty rating grades.
Cash Management Trusts with Prudential Rating of Grade 4
List the aggregate value of holdings in investment vehicles, which constitute cash management trusts that have a rating of grade 4 or are unlisted. Refer to Attachment 1 and 2 of GGN 110.4 Investment Risk Capital Charge for detail on counterparty rating grades.
Cash Management Trusts with Prudential Rating of Grade 5
List the aggregate value of holdings in investment vehicles, which constitute cash management trusts that have a rating of grade 5. Refer to Attachment 1 and 2 of GGN 110.4 Investment Risk Capital Charge for detail on counterparty rating grades.
Aggregate holdings representing exposure to the following asset classes:
This disclosure is separate from disclosure requirements contained in point 1 – 6 of this table. The aggregate value of the holdings disclosed in Table 1 must also be disclosed in accordance to the nature of the market exposure of the underlying assets (i.e. interest rate related, equity related, property related). If the units are held in a diversified or balanced trust, the investment holding is to be disclosure in accordance with the funds advised asset allocation.
Column Headings of Table 2:
Total Funds
Disclose the aggregate value of the holdings (report the Australian dollar equivalent of funds invested in currencies other than the Australian dollar).
Represent Policyholders funds
Disclose the aggregate balance of investments disclosed in Table 1 that are designated as representing policyholders funds, where the insurer has established the investment management mandates along these terms to reflect the different cashflow/risk and return requirements of shareholders funds from policyholders/technical reserves.
Policyholders funds is also referred to as technical reserves/funds. Use of the term does not imply ownership of these funds by policyholders, like under life insurance.
Represent Shareholders funds
Disclose the aggregate balance of investments disclosed in Table 1 that are designated as representing shareholders funds, where the insurer has established the investment management mandates along these terms to reflect the different cashflow/risk and return requirements of shareholders funds from policyholders/technical reserves.
Investment Capital Factor %
Note: not applicable for consolidated insurance group
This column discloses the appropriate investment capital factor for the asset type in accordance with GGN 110.4 Investment Risk Capital Charge Attachment 1.
Investment Risk Charge
Note: not applicable for consolidated insurance group
This column will calculate the appropriate investment risk charge in accordance with GGN 110.4 Investment Risk Capital Charge Attachment 1.