In the “Total Net Market Value” column for items 3.1 to 3.9, report the net market value of local investments in Australian Dollars, and of investments in foreign currencies converted into Australian Dollars.
In the “Net Market Value in Australia” column for items 3.1 to 3.9, report the net market value of investments whose source currency is Australian Dollars (i.e. the investment does not have exposure to foreign currency gains/losses in converting the value into Australian currency).
Both of the above columns should be completed as appropriate.
Items 3.1 to 3.5 relate to investments that are directly held by the superannuation entity as part of the internal investment management of the superannuation entity and do not include underlying assets/investments that are held with external investment managers. Investments of the superannuation entity that are held with external investment managers are to be reported in items 3.6 or 3.7. Where the superannuation entity’s investments are held by a custodian on behalf of the entity, the investments held by the custodian are treated as the investments of the superannuation entity and should be classified as direct or indirect investments according to the criteria above.
Investments directly held by the superannuation entity
Items 3.1 to 3.5 relate to investments that are directly held by the superannuation entity as part of the internal investment management of that entity, and do not include underlying assets/investments that are held with external investment managers.
Investments outside Australia are investments which are managed by an investment manager who does not have an Australian operation, and the contract to manage the investment is not with an Australian resident manager.
Investments of the superannuation entity that are held with external investment managers are to be reported in items 12.6 or 12.7.
3.1. Deposits, placements, loans and debt securities
Depending on which Version of SRF 110.1 Selected Disclosure of Investments is applicable:
Total should agree to SRF 110.1 Selected Disclosure of Investments Version A: ‘’ PART A item 3 ‘Total deposits, placements, loans and securities’ or
Total should agree to SRF 110.1 Selected Disclosure of Investments Version B: “PART A item 4 ‘Total deposits, placements, loans and securities’
Exclude
Investment in unlisted retail/public offer cash management unit trusts. These are to be reported under item 3.7.5; and
Interest-rate related derivative financial instruments. These are to be reported separately under item 3.4 (where the exposure represents a net gain to the superannuation entity) or in item 6 (where the exposure represents a net loss).
Important!
SRF 110.1A Selected Disclosure of Investments: Total Net Market Value column reported in SRF 110.0 Statement of Financial Position item 3.1 should agree with the Total ‘Net Market Value’ column of SRF 110.1A Selected Disclosure of Investments, PART A, item 3 Total deposits, placements, loans and debt securities.
OR
SRF 110.1B Selected Disclosure of Investments: Total of SRF 110.1B Selected Disclosure of Investments, PART A, item 4 Total deposits, placements, loans and securities should agree with ‘Total net market value’ reported in SRF 110.0 Statement of Financial Position in item 3.1. ‘Deposits, placements, loans and debt securities’.
3.1.1. Deposits
Report cash and deposits with organisations issued with an Australian Banking Authority and amounts placed with short term and other money market corporations, permanent building societies etc.
3.1.2. Placements, loans and debt securities
Report the net market value of these investments including (but not limited to):
placements, loans with, and debt securities issued by Individuals, Unlisted private incorporated entities, and Unlisted private unincorporated entities (including unlisted private trusts);
other placements, loans and debt securities;
Short term debt securities (e.g. bills of exchange ,certificates of deposit, commercial paper, promissory notes); and
Long term debt securities (e.g. Treasury Bonds, securitised instruments).
Exclude
Deposits issued by Authorised Deposit Taking Institutions. These should be included at item 3.1.1.
3.2. Direct holdings of equity securities of listed corporations and units in listed unit trusts
Report the net market value of the superannuation entity’s direct holdings of equity securities (i.e. shares) of listed corporations and units in listed unit trusts on all exchanges.
Exclude
Investment in unlisted retail/public offer cash management unit trusts. These are to be reported under item 3.7.5;
Equity related derivative contracts. These are to be disclosed separately under the item 3.4 or item 6 “Derivative financial instruments”; and
Investments in PSTs. These are disclosed separately under item 3.7.2 ‘Pooled super trusts’.
Important!
Total of SRF 110.1B Selected Disclosure of Investments, PART B, item 6 ‘Total direct equity investments that are listed on the ASX’, column ‘Net market value at the end of the reporting period’ should agree with ’Net Market Value in Australia’ column for item 3.2 ‘Direct holdings of equity securities of listed corporations and units in listed unit trusts’ in SRF 110.0 Statement of Financial Position.
3.3. Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures
Report the net market value of the superannuation entity’s investment in equity securities (e.g. shares) of unlisted corporations, units in unlisted private unit trusts and venture operations. Total should agree to SRF 110.1 Selected Disclosure of Investments either
SRF 110.1 Selected Disclosure of Investments version A: Total of PART B and PART D (refer below); or
SRF 110.1 Selected Disclosure of Investments version B: Total of PART C, PART D and PART E (refer below)
Exclude
Investments in PSTs. These are disclosed separately under item 3.7.2 ‘Pooled super trusts’.
Important!
SRF 110.1A Selected Disclosure of Investments: ‘Total Net Market Value’ column reported in SRF 110.0 Statement of Financial Position for item 3.3 ‘Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures’.
should agree with
The sum of the total of SRF 110.1A Selected Disclosure of Investments, PART B, column 6 PLUS SRF 110.1A Selected Disclosure of Investments, PART D, column 5
OR
SRF 110.1B Selected Disclosure of Investments: The sum of SRF 110.1B Selected Disclosure of Investments, PART D, Section 1, item 1.4 PLUS SRF 110.1B Selected Disclosure of Investments PART D, Section 2 (Table 3) ‘Total’ PLUS SRF 110.1B Selected Disclosure of Investments, PART E ‘Total’
should agree to
SRF 110.0 Statement of Financial Position item 3.3 ‘Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures.
3.4. Direct holdings of derivative financial instruments
Report the net market value of derivatives exposure of the superannuation entity that is reported in SRF 110.2 Derivative Financial Instruments item 3, where the net market value of the exposure represents a net gain to the superannuation entity. This only relates to derivative financial instruments that are directly held and managed by the superannuation entity (i.e. transacted as part of internal investment management).
Exclude
The aggregate net market value of derivatives held by the superannuation entity where this represents a net loss to the superannuation entity. This is to be reported under ‘Liabilities’ in item 6 ‘Direct holdings of derivative financial instruments’; and
Derivative investments held through an external individually managed mandate/portfolio or discretely managed portfolio (i.e. for this item, the superannuation entity is not required to look through the portfolio to the underlying investments to ascertain the derivatives exposure). Derivatives in externally individually managed mandates should be shown in SRF 110.0 Statement of Financial Position item 3.9 ‘Other investments’.
3.5. Direct holdings of property
Report the total of the superannuation entity’s direct holdings of property investments. For prudential reporting purposes a property investment exists where the investment (earnings and capital value) are dependent on the cash flows generated by the property through sale or rental income. APRA does not require property holdings to be valued quarterly; the value at last valuation date is acceptable for quarterly reporting.
Include:
Property investments acquired as part of the internal investment management of the superannuation entity.
Exclude:
Underlying property investments held in the form of an external individually managed mandate/portfolio or discretely managed portfolio. The value of these investments is to be reported in the appropriate item of 3.6 and or 3.7.1 in this section; and
Direct investments in property trusts (both listed and unlisted). Investments in listed property trusts are to be reported in item 3.2, and investments in unlisted private property unit trusts are to be reported in item 3.3 and unlisted public offer/retail property unit trusts are to be reported in item 3.7.5.
The superannuation entity’s total direct property investment value is to be classified into the following categories:
3.5.1. Which is not completed
Report the net market value of direct holdings of property that represents property under development or construction, or where the value recognised is contingent on development being approved or completed.
3.5.2. Which is completed
Report the net market value of direct property investments that are completed (i.e. all direct property investments not reported under item 3.5.1).
Guidance for items 3.6 and 3.7:
Investments not directly held by the superannuation entity
Investments of the superannuation entity that are held with external investment managers are to be reported in items 3.6 or 3.7.
Items 3.1 to 3.5 relate to investments that are directly held by the superannuation entity as part of the internal investment management of that entity, and do not include underlying assets/investments that are held with external investment managers.
It is APRA’s intention that the following definitions be applied for items 3.6 and 3.7
Australian Investment Managers – These are managers who are resident in Australia (i.e. the party with whom the trustee has signed the investment contract is Australia-based, regardless of whether the investment manager has an overseas parent).
Overseas Investment Managers – If the investment manager does not have an
Australian operation, then the manager is considered to be an overseas manager (i.e. the party with whom the trustee has signed the investment contract is not resident in Australia).
3.6. Funds placed with overseas investment managers
Report the total amount of funds placed with overseas investment managers.
Exclude:
Amounts self-invested overseas which should be reported under items 3.1 to 3.5 as appropriate; and
Amounts placed with Australian investment managers for investment overseas (item 3.7).
3.7. Funds placed with investment managers in Australia classified into the following:
Include:
Amounts managed by the investment management operations of life companies; and
Amounts placed with Australian investment managers for investment overseas.
Exclude:
Investments in listed unit trusts and unlisted private trusts which would be reported under items 3.2 and 3.3 above.
3.7.1. Individually managed mandates/portfolios
This represents amounts placed with external individually managed mandates or portfolios where the asset portfolio is tailored for or chosen by the superannuation entity.
3.7.2. Pooled super trusts
Exclude unitised investments with life companies where the original or primary investment is an insurance or investment policy (item 3.7.4).
3.7.3. Wholesale trusts
A wholesale trust is usually only open to institutional investors and has a high entry level. An information memorandum is usually issued rather than a product disclosure statement. Report the net market value of investments in wholesale trusts, other than PSTs (item 3.7.2), listed unit trusts (item 3.2) or unlisted retail/public offer trusts (item 3.7.5).
3.7.4. Investment and/or insurance policies held in the statutory fund of life companies
Life insurance business must be conducted through separately accounted ‘statutory funds’ within a life insurer. Report at this item:
The value of unit-linked insurance or investment policies regardless of who manages the underlying assets of these policies/products, or how the underlying assets are distributed/invested. If net market value is not available or appropriate (e.g. traditional whole of life policies) use surrender value.
The net market value of policies in respect of death, total, permanent or temporary disablement.
3.7.5. Unlisted retail/public offer unit trusts
Includes (but is not limited to): Investments in unlisted retail/public offer cash management unit trusts.
Important!
SRF 110.1A Selected Disclosure of Investments: Total Net Market Value column reported in SRF 110.0 Statement of Financial Position for item 3.7.5 ‘Unlisted retail/public offer unit trusts’ should agree with total of SRF 110.1A Selected Disclosure of Investments, PART C, item 5 ‘Total’, column ‘Net market value at the end of the reporting period‘.
OR
SRF 110.1B Selected Disclosure of Investments: Total of SRF 110.1B Selected Disclosure of Investments, PART C, item 5 ‘Total’, column ‘Net market value at the end of the reporting period’ should agree with item 3.7.5. ‘Investments in unlisted retail/public offer unit trusts’ in SRF 110.0 Statement of Financial Position
3.8. Leased assets
A finance lease over an asset is “a lease under which the lessor effectively transfers to the lessee substantially all the risks and benefits incident to ownership of the leased asset and where legal ownership may eventually be transferred”.
Report the value of assets that are subject to lease arrangements (i.e. finance leases) where the superannuation entity is required by current Australian Accounting Standards, to recognise and report assets that are subject to lease arrangements.
3.9. Other investments
Disclose the total net market value of all other investments not separately reported above in items 3.1 to 3.8.
3.10. Total investments
Represents the sum of all investments reported in items 3.1 to 3.9.
Note that if a superannuation entity reports investments with a source currency other than the AUD in SRF 110.0 Statement of Financial Position item 3.10 ‘Total Investments’, then an FX gain or loss should be reported within SRS 100.0 Statement of Financial Performance item 11.3.