Completion of SRF 110.1A Selected Disclosure of Investments (Version A)
This form is applicable to superannuation entities, excluding Small APRA Funds (SAFs) and Single Member Approved Deposit Funds (SMADFs), that have total assets equal to or greater than $50m at the end of the entity’s last year of income but are not within the largest 200 entities in the industry by total asset size. Accordingly trustees of these entities will be required to only complete version A of this form.
Trustees of those superannuation entities, excluding Small APRA Funds (SAFs) and Single Member Approved Deposit Funds (SMADFs), that have total assets of at least $50m and are within the largest 200 entities in the industry in terms of total assets, are not required to complete Version A of this form and are required to only complete Version B of this form. APRA will advise those entities that are within this grouping and customise the reporting package in D2A so that the correct version is applied to them.
Superannuation entities that are required to complete SRF 110.1 Selected Disclosure of Investments Version A or B on a quarterly basis must also complete SRF 210.1 Selected Disclosure of Investments on an annual basis.
Note: All forms included in the SRF 100 series should be submitted together as a quarterly return, not individually as separate forms.
Purpose
This instruction guide is designed to assist in the completion of the SRF 110.1 A Selected Disclosure of Investments (Version A). The information requested in this form is required by APRA.
Lodgement and validation of SRF 110.1A Selected Disclosure of Investments
Lodgement and authentication codes
This form must be completed and lodged to APRA by a corporate or natural ‘person’ (trustee director or administrator), and not by the superannuation entity as the entity is not a ‘person’.
Once SRF 110.1A Selected Disclosure of Investments (Version A) has been completed and submitted to APRA, an authentication code is generated in D2A from information entered into the form. The authentication code and date submitted appear in the footer of each page of the form. Any change of information entered or resubmission of the form will result in a change to the authentication code.
A receipt indicating successful lodgement of the form will be provided via email. There may be a slight delay in a receipt being provided if the submission is made in the last week of October. Do not resubmit your form however, as the receipt will be generated.
Validation and calculation of totals
When data is entered into the form, the total balances (in the greyed out cells) will not be calculated automatically. The total items will only calculate when the form is validated. Clicking on the word 'validate' in the top left hand corner of the screen and selecting ‘OK’ will result in the total items being calculated and the validation rules appearing for review.
Section (1) Name - Financial Sector (Collection of Data) determination No. 48 of 2005 - (1) Name | Zoe
There are three types of validation rules as follows:
Warnings: Confirmation rules – this rule requires the user to provide confirmation that the data entered into an item is correct, for example that a negative number is correct and should not be positive. To provide confirmation the user should click the confirm box and provide a brief description in support of the item.
Note: Descriptions entered for warnings may not always appear if the return is validated more than once. There is no need to re-enter the description as D2A has saved this description and the comments will be lodged with the return.
Error: Mandatory rules – this indicates an error in an item, for example a description and a value must be included in a table. These errors must be corrected before the return can be lodged.
Cross form validations – this also indicates an error and must be corrected before the return can be lodged, for example Totals disclosed in SRF 110.0 Statement of Financial Position item 12 ‘Net assets available to pay benefits’ must agree with the net assets reported in item 23 ‘Net assets available to pay benefits at the end of the reporting period disclosed on SRF 100.0 Statement of Financial Performance for each quarter.
General guidance for completion of SRF 110.1A Selected Disclosure of Investments (Version A)
This form requests information to be disclosed in the following parts:
Part A: Deposits, placements, loans and debt securities
Part B: Investments in equity securities of unlisted corporations and units in unlisted private trusts
Part C: Interest in unlisted retail/public offer trusts
Part D: Interest in ventures
SRF 110.1 Selected Disclosure of Investments (Version A) is an annexure providing further detail on the composition of the aggregated net market value reported for certain investment items in SRF 110.0 Statement of Financial Position. In particular the following must agree:
Total ‘Net Market Value’ column of SRF 110.1A Selected Disclosure of Investments (Version A), PART A, item 3 should agree with the ‘Total Net Market Value’ column reported in SRF 110.0 Statement of Financial Position item 3.1. ‘Deposits, placements, loans and debt securities’.
The sum of the total of SRF 110.1A Selected Disclosure of Investments (Version A), PART B, column 6 PLUS SRF 110.1A Selected Disclosure of Investments (Version A), PART D, column 5
should agree with
‘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’.
Total of SRF 110.1A Selected Disclosure of Investments (Version A), PART C, item 5 ‘Total’, column ‘Net market value at the end of the reporting period‘ should agree with ‘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’.
Important!
Not all investments, as disclosed on SRF 110.0 Statement of Financial Position item 3, are required to be reported on SRF 110.1A Selected Disclosure of Investments (Version A). However, in accordance with the above requirements, the net market value of investments reported in PARTs A to D of SRF 110.1A should agree to the relevant items in SRF 110.0 Statement of Financial Position.
Important!
Zeros are not required where there is no dollar value for an item. If there is no balance for an item, leave it blank. The form can be left blank as D2A recognises blanks as zeros.
Important!
Report all disclosures rounded to the nearest thousand dollars. Do not use decimal numbers i.e. when dividing the value to obtain a rounded balance to the nearest thousand dollars, ensure that the figure is whole.
Important!
If an investment balance has moved significantly since the previous quarterly return, the Trustee may be requested to explain or verify this movement to APRA.
Classification of Rating Grade of Counterparty
The counterparty grades set out in the table below are to be used in classifying the rating grades for the purposes of PART A and PART C of this form. This table discloses the corresponding counterparty ratings of a number of rating agencies and the general classification APRA will apply to these ratings. The superannuation entity should request these rating grades directly from the counterparty (i.e. the other party with whom the transaction is being made) or investment manager, and should not rely on consumer rating agencies which rate collective investments.
Where the superannuation entity has investments with multiple ratings from two or more of the rating agencies in the table above, its trustee should consistently apply the rating of a single agency wherever possible. For example, a superannuation entity may have a number of counterparties that are rated by S&P and Fitch. In this case the superannuation entity should select a single rating agency that will be consistently applied whenever the individual ratings conflict.
The ratings in the above table from the respective rating agencies are generally consistent with long term rating/debt securities. Where the superannuation entity invests in counterparties/securities that have only been issued with a short term counterparty rating, the closest match from the above table should be used to classify the investments into the appropriate APRA grades.
Unknown rating grade
If a rating grade is unknown or not available use rating grade 6. Where investment managers cannot confirm their ratings a rating grade 6 should also be used.
Instruction guide for specific items
Part A: Deposits, placements, loans and debt securities
Scope
Include
Includes interest-rate related cash and investments of the superannuation entity; and
Include loans and advances in section 1.
Exclude
Holding of units in unit trusts such as a cash management trust. While being an interest-rate related investment of the superannuation entity, holdings of unlisted retail/public offer cash management trusts are to be excluded from this PART and reported in PART C: ‘Interest in Retail/Public Offer Trusts’ and in aggregate in SRF 110.0 Statement of Financial Position item 3.7.5. ‘unlisted retail/public offer unit trusts’.
If the superannuation entity holds listed notes/hybrid securities which have characteristics of a debt security & an equity security, these securities should be classified in the same manner as they appear in the entity's audited financial statements.
Part A: Explanation of line items
Total deposits, placements and loans
Report the net market value of cash and ‘deposits, placements, loans and advances’ made by the superannuation entity as at the end of the reporting period.
Total deposits, placements and loans and advances which are with the following
1.1. Unlisted corporations
Report deposits, placements and loans and advances to unlisted corporations.
1.2. Unlisted private trusts
Report deposits, placements and loans and advances to unlisted private trusts.
1.3. Individuals
Report deposits, placements, loans and advances that are to individuals.
Important!
Holdings of deposits, placements, loans and advances that are not with any of the parties identified in items 1.1 to 1.3 should be included in the total at item 1; however they should not be included at items 1.1 to 1.3. This means that the sum of items 1.1 to 1.3 may not equal the total at item 1.
Total debt securities
Report the net market value of the superannuation entity’s holdings of debt securities as at the end of the reporting period.
Total debt securities which are:
2.1. Securitised instruments
This will include securities issued by financial vehicles that issue securities (called asset-backed securities) using specifically selected assets (e.g. mortgages, receivables). They provide backing (collateral) for the securities and generate the payment streams necessary to fulfil interest and principal requirements for investors. Include holdings of the following:
Mortgage backed securities; and
Other asset backed securities (other than mortgage backed).
2.2. Debt securities issued by unlisted corporations
This includes all debt securities where the issuer of the security is an unlisted corporation.
Important!
Holdings of debt securities that are not with any of the parties identified in items 2.1 or 2.2 should be included in the total at item 2; however they should not be included at items 2.1 or 2.2. This means that the sum of items 2.1 and 2.2 may not equal the total at item 2.
Total value of deposits, placements, loans and advances and securities
Represents the sum of items 1 and 2.
This will agree to SRF 110.0 Statement of Financial Position, ‘Total net market value’ column of item 3.1 ‘deposits, placements, loans and debt securities’
Important!
Total ‘Net Market Value’ column of item 3 of PART A should agree with the ‘Total Net Market Value’ column reported in SRF 110.0 Statement of Financial Position item 3.1. ‘Deposits, placements, loans and debt securities’.
Part A: Explanation of column headings
Total Net Market Value of Portfolio Classified into the following Counterparty Rating Grades
Rating Grade 1
Of the total reported at item 3 in the ‘Net market value’ column, report in this column the aggregate value of exposures that have an APRA rating grade of 1. Refer to table above for classification of APRA rating grades and how these align with rating agencies’ ratings.
Rating Grade 2
Of the total reported at item 3 in the ‘Net market value’ column, report in this column the aggregate value of exposures that have an APRA rating grade of 2. Refer to table above for classification of APRA rating grades and how these align with rating agencies’ ratings.
Rating Grade 3
Of the total reported at item 3 in the ‘Net market value’ column, report in this column the aggregate value of exposures that have an APRA rating grade of 3. Refer to table above for classification of APRA rating grades and how these align with rating agencies’ ratings.
Rating Grade 4
Of the total reported at item 4 in the ‘Net market value’ column, report in this column the aggregate value of exposures that have an APRA rating grade of 4. Refer to table above for classification of APRA rating grades and how these align with rating agencies’ ratings.
Rating Grade 5
Of the total reported at item 3 in the ‘Net market value’ column, report in this column the aggregate value of exposures that have an APRA rating grade of 5. Refer to table above for classification of APRA rating grades and how these align with rating agencies’ ratings.
Rating Grade 6
Of the total reported at item 3 in the ‘Net market value’ column, report in this column the aggregate value of exposures that are unrated.
Part B: Investments in equity securities of unlisted corporations and units in unlisted private trusts
Scope
Include
Direct holdings of investments acquired as part of the internal investment management function of the superannuation entity. This includes investments held by a custodian where these are held in Trust for the entity.
Assets that are NOT to be reported in this part:
Do not include the underlying assets supporting the investments in external individually managed mandates/portfolios. Investments in external individually managed mandates/portfolios are to be treated as investments in managed funds and reported in aggregate on SRF 110.0 Statement of Financial Position in item 3.7.1 ‘Individually managed mandates/portfolios’.
Do not include investments in equity securities of listed corporations and units in listed trusts in this PART. These are to be reported in aggregate in SRF 110.0 Statement of Financial Position in item 3.2. ‘Equity securities of listed corporations and units in listed unit trusts’.
Do not include investments in Pooled Super Trusts. These are to be reported in aggregate on SRF 110.0 Statement of Financial Position in item 3.7.2 ‘Pooled Super Trusts’.
Do not include investments in Wholesale trusts. These are to be reported in aggregate on SRF 110.0 Statement of Financial Position in item 3.7.3 ‘Wholesale trusts’.
Do not include investments in unlisted retail/public offer unit trusts. These are to be reported in PART C: ‘Interests in Unlisted Retail/Public Offer Unit Trusts’ and in aggregate in SRF 110.0 Statement of Financial Position in item 3.7.5 ‘Unlisted retail/public offer unit trusts’.
Part B: Explanation of column headings
(1) Name of unlisted corporation/unlisted private unit trust
Report the full name of the entity.
(2) ABN
Report the Australian Business Number of the entity, or if no ABN, leave blank.
Completion of the ABN fields is not mandatory to lodge returns. If the ABN is not recorded in the superannuation entities’ system, or is not known, leave the ABN blank. A Warning confirmation validation rule in D2A will request confirmation that the investment entity has not applied for an ABN. Tick the box as confirmation and enter the comment that ABN is not known.
(3) Business
In the space provided, detail a brief description of the main business conducted by the entity.
(4) Ownership/interest %
Disclose the percentage (to the nearest whole number) of the superannuation entity’s ownership of the equity securities or units issued by the investment entity. i.e. no. of securities/units owned by the superannuation entity divided by total securities/units on issue, multiplied by 100.
(5) Initial cost
Disclose the initial cost of the investment in the entity. Where this involves multiple acquisitions, sum the cost of each acquisition.
(6) Value
Disclose the net market value of the investment in the entity as at the end of the reporting period. Net market value is defined in accordance with the current Australian Accounting Standards.
Important!
The sum of the ‘total value’ columns in SRF 110.1A Selected Disclosure of Investments (Version A), PART B, Column 6, PLUS SRF 110.1A Selected Disclosure of Investments (Version A), PART D, column 5 should agree to SRF 110.0 Statement of Financial Position in item 3.3 (‘Total net market value’ column).
Part C: Interest in unlisted retail/public offer trusts
Scope
Include
Holdings of investments acquired as part of an internal investment management function of the superannuation entity. This includes investments held by a custodian where these are held in Trust for the entity.
Exclude
Underlying investment securities and other investment assets that form part of an external individually managed mandate or portfolio; and
Wholesale trusts and Pooled Superannuation Trusts (these are disclosed separately in item 3.7 in SRF 110.0 Statement of Financial Position).
Part C: Explanation of line items
Investments in unlisted retail/public offer trusts are requested to be classified under the following headings:
Unlisted property trusts
Unlisted equities trusts
Unlisted cash management trusts
Other unlisted unit trusts
Total
Represents the sum of PART C items 1-4 above.
Important!
Total of SRF 110.1A Selected Disclosure of Investments (Version A), PART C, item 5 ‘Total’, column ‘Net market value at the end of the reporting period‘ should agree with ‘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’.
Part C: Explanation of column headings
Total net market value classified into the following counterparty rating grades
Classify the total ‘net market value at the end of the reporting period reported’ column at item 5 of PART C into the appropriate APRA counterparty rating grades. The counterparty rating grades are the same as those outlined at the start of this instruction guide and used in PART A of this form.
If a rating grade is unknown or not available use rating grade 6. Where investment managers cannot confirm their ratings a rating grade 6 should also be used.
Part D: Interest in Ventures
Scope
Include
Direct holdings of investments acquired as part of the internal investment management function of the superannuation entity.
Exclude
Underlying investment securities and other investment assets that form part of an external individually managed mandate or portfolio.
For the purposes of this form joint venture is to be interpreted as defined in current Australian Accounting Standards:
“Joint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.” A joint venture can take the form of the following:
Joint venture entity; or
Joint venture operation.
Joint venture entity means a joint venture that is in the form of an entity and does not include:
(a) an entity that is acquired and held exclusively with a view to its disposal in the near future
(b) an entity that operates under severe long-term restrictions which impair significantly its ability to make distributions to the venturer.
Joint venture operation means a joint venture that is not a joint venture entity and does not include an entity that:
(a) is acquired and held exclusively with a view to its disposal in the near future
(b) operates under severe long-term restrictions that impair significantly its ability to make distributions to the venturer.
Part D: Explanation of column headings
(1) Name
Report the full name of the venture.
(2) Business
In the space provided, detail a brief description of the main business conducted by the venture.
(3) Ownership/interest %
Disclose the percentage of the reporting superannuation entity’s ownership or interest in the venture.
(4) Initial cost
Disclose the initial cost of the investment of the reporting superannuation entity in the venture.
(5) Value
Disclose the net market value of the investment/interest of the reporting superannuation entity in the venture. Net market value is to be interpreted as defined in accordance with current Australian Accounting Standards.
Important!
The sum of the total of SRF 110.1A Selected Disclosure of Investments (Version A), PART B, column 6 PLUS SRF 110.1A Selected Disclosure of Investments (Version A), PART D, column 5
should agree with
‘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’.