Financial Sector (Collection of Data) (reporting standard) determination No. 81 of 2013 - SRS 532.0 - Investment Exposure Concentrations
1Financial Sector (Collection of Data) (reporting standard) determination No. 81 of 2013 - SRS 532.0 - Investment Exposure Concentrations
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Financial Sector (Collection of Data) (reporting standard) determination No. 81 of 2013
Reporting Standard SRS 532.0 Investment Exposure Concentrations
Financial Sector (Collection of Data) Act 2001
I, Steven John Davies, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) DETERMINE Reporting Standard SRS 532.0 Investment Exposure Concentrations, in the form set out in the Schedule, which applies to 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 applies to those financial sector entities on and after 1 July 2014.
This instrument commences on the date of registration on the Federal Register of Legislative Instruments.
Dated: 3 June 2013
[signed]
Steven John Davies
General Manager
Statistics
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 532.0 Investment Exposure Concentrations comprises the 29 pages commencing on the following page.
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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
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
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.
This Reporting Standard applies for reporting periods ending on or after 1 July 2014.
Information required
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
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
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.
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.
The information required by this Reporting Standard must be provided to APRA:
(a) within 28 calendar days after the end of the quarter to which the information relates[2]; and
(b) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.
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
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.[3] 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.
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
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.
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.
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
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
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[4];
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 and, in relation to the period between 1 July 2013 and 31 December 2013, includes an existing ERF within the meaning given in section 391 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(a) or 7(b) 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[5];
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.
SRF 532.0: Investment Exposure Concentrations
Australian Business Number
Institution Name
Reporting Period
Scale Factor
Reporting Consolidation
Directly held investments - large exposures
Name
Value
Asset class type
Asset domicile type
Asset listing type
Fixed income type
(1)
(2)
(3)
(4)
(5)
(6)
Cash
Australia domicile
Listed
Government debt
Fixed income
International domicile
Unlisted
non Government debt
Equity
Not applicable
Not applicable
Mortgage debt
Property
Credit
Infrastructure
Not applicable
Commodities
Other
Fixed income currency type
Counterparty credit rating
Fixed income term
Mortgage type
International economy type
Exposure type
(7)
(8)
(9)
(10)
(11)
(12)
Australian dollars
Grade 1
Short term
Residential mortgage
Emerging markets
MySuper product
Other currency
Grade 2
Long term
Commercial mortgage
Developed markets
Defined benefit interests
Not applicable
Grade 3
Not applicable
Not applicable
Not applicable
Both MySuper product and defined benefit interests
3. Indirectly held investments - exposure concentrations in underlying investment vehicles
Indirectly held investment vehicle name
Indirectly held investment vehicle ABN
Interposed associates
(1)
(2)
(3)
Underlying investment vehicle name
Underlying investment vehicle ABN
Type of underlying investment vehicle
Underlying investment value
Invests in investment vehicles
Associate
(4)
(5)
(6)
(7)
(8)
(9)
Cash management trust
Yes
Yes
Life company guaranteed
No
No
Life company investment linked
Listed retail trust
Pooled superannuation trust
Unlisted retail trust
Wholesale trust
Other indirect investment
Large exposures by country of investment
4. Directly held investments - large exposures by country of investment
Country
Value
(1)
(2)
Country list
5. Indirectly held investments - large exposures by international exposure
Domicile of investment vehicle
Associate
International region exposure
Country
Value
(1)
(2)
(3)
(4)
(5)
Country list
Yes
Global
Country list
No
Americas region
Not applicable
Asia region
Europe region
Mid East or Africa region
Oceania region
Individual country
Large exposures in unlisted investments
6. Unlisted investments
Entity type
Name
ABN
Associate
Ownership percentage
Initial Cost
(1)
(2)
(3)
(4)
(5)
(6)
Unlisted corporation
Yes
Unlisted private trust
No
Limited partnership
Joint venture
Value
Distributions
Commitments outstanding
Exposure type
(7)
(8)
(9)
(10)
MySuper product
Defined benefit interests
Both MySuper product and defined benefit interests
Neither
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 should attempt to use the same exchange rates across all returns to APRA.
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 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.
Items on SRF 532.0 are to be reported on a non look through basis or a look through basis. A look through basis is where information about the underlying investments in an investment vehicle must be reported.
These instructions specify the unit of measurement and 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 assets of the RSE.
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.
Look through basis: report item 1 on a non 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 or fixed income. 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, 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 look through basis, reporting with respect of an investment vehicle that the RSE invests in; report item 2.1 column 5 to column 10 inclusive on a look through basis, reporting on the assets underlying the investment vehicle.
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; andif 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; andreport the exposure type in column 5.The investment vehicle types are: cash management trust, life company guaranteed, life company investment linked, 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 or fixed income. 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 associates of 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 assets of the RSE. This is referred to as ‘look-through’ 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 assets of the RSE, treat the underlying investment as an indirectly-held investment and report the information on a new line in item 3.
Look-through reporting does not apply to non-associated investment vehicles. Therefore, repeat this reporting process for each indirectly-held investment that is with an associated investment vehicle, which has an underlying investment that represents at least one per cent of the total assets of the RSE.
Illustration of look-through
The diagram below provides an illustration of look-through to assist with reporting in item 3. The diagram portrays the RSE investing in Investment Vehicle A which is an associate of the RSE licensee/RSE. Investment Vehicle A invests some or all of the RSE’s investment with Investment Vehicle B which is also an associate of the RSE licensee/RSE. Investment Vehicle B invests some or all of the RSE’s investment with Investment Vehicle C which is not an associate of the RSE licensee/RSE. The investment in Investment Vehicle A, Investment Vehicle B and Investment Vehicle C must be reported in item 3. Further look-through reporting regarding the investments underlying Investment Vehicle C is not required.
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Unit of measurement: report item 3 column 3 as a whole number and item 3 column 7 as thousands of dollars.
Look through basis: item 3 is reported on a 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 assets 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 an associate of 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 assets 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 an associate of 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, listed retail trust, pooled superannuation trust, unlisted retail trust, wholesale trust and ‘other indirect investment’.
Interposed associate
Represents an associate 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 assets, 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.
Look through basis: item 4 is reported on a non 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 assets 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 assets 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 assets of the RSE, the investment does not need to be reported.
Example: two non-associated 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 assets, are to be aggregated and reported in a single line.
Example: two associated investment vehicles domiciled in Brazil that invest in the Americas with an aggregate value of 0.75 per cent of the RSE’s total assets do not need to be reported.
Unit of measurement: report item 5 column 5 as thousands of dollars.
Look through basis: report item 5 column 1 and column 2 on a non look through basis; report item 5 column 3, column 4 and column 5 on a 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 assets 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 assets.
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.
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 assets 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.The unlisted entity types are: unlisted corporation, unlisted private trust, limited partnership and joint venture.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 and recognised at market value. Reference: Australian Accounting Standards.
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 calculated by reference to units, the value of which are guaranteed by the contract not to be reduced and provides for the account to be increased, within the meaning given in s. 14.2 of the Life Insurance Act 1995.
Life company investment linked
Represents the provision of benefits calculated by reference to a running account under the contract and provides for the account to be increased, within the meaning given in s. 14.2 of the Life Insurance Act 1995.
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 and, in relation to the period between 1 July 2013 and 31 December 2013, includes an existing ERF within the meaning given in section 391 of the SIS Act;
large exposure means an investment that represents at least one per cent of the assets of the RSE;
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[6];
RSE licensee has the meaning given in section 10(1) of the SIS Act;
SIS Act means Superannuation Industry (Supervision) Act 1993; and
SIS Regulations means Superannuation Industry (Supervision) Regulations 1994.
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
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 assets are less than one per cent of the assets 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 assets are less than one per cent of the assets of the RSE.
Appendix 2: Country list
The following country list must be used when reporting item 4 and item 5.
If the country cannot be identified, report the relevant ‘residual’ region. If the residual region cannot be identified, report ‘unallocated’.
Country/Grouping
Code
Afghanistan
AF
Albania
AL
Algeria
DZ
Andorra
AD
Angola
AO
Argentina
AR
Armenia
AM
Aruba
AW
Australia
AU includes Christmas Islands, Cocos Islands, Norfolk Islands, Heard and McDonald Islands, Territory of Ashmore and Cartier Islands and Territory of Coral Sea Islands
Austria
AT
Azerbaijan
AZ
Bahamas
BS
Bahrain
BH
Bangladesh
BD
Barbados
BB
Belarus
BY
Belgium
BE
Belize
BZ
Benin
BJ
Bermuda
BM
Bhutan
BT
Bolivia
BO
Bosnia and Herzegovina
BA
Botswana
BW
Brazil
BR
British Overseas Territories
1W includes British Antarctic Territory, British Indian Ocean Territory, Chagos, Pitcairn Islands, South Georgia and South Sandwich Islands
Brunei
BN
Bulgaria
BG
Burkina Faso
BF
Burundi
BI
Cambodia
KH
Cameroon
CM
Canada
CA
Cape Verde
CV
Cayman Islands
KY
Central African Republic
CF
Chad
TD
Chile
CL
China
CN
Colombia
CO
Comoros Islands
KM
Congo
CG
Congo Democratic Republic
CD
Consortium Banks
1G
Costa Rica
CR
Cote d'Ivoire
CI
Croatia
HR
Cuba
CU
Cyprus
CY
Czech Republic
CZ
Denmark
DK excludes Faeroe Islands and Greenland
Djibouti
DJ
Dominica
DM
Dominican Republic
DO
Ecuador
EC
Egypt
EG
El Salvador
SV
Equatorial Guinea
GQ
Eritrea
ER
Estonia
EE
Ethiopia
ET
Faeroe Islands
FO
Falkland Islands
FK
Fiji
FJ
Finland
FI includes Aland Islands
France
FR includes French Guiana, French Southern Territories, Guadeloupe, Martinique, Mayotte, Monaco, Reunion and St. Pierre and Miquelon
French Polynesia
PF includes Society Archipelago, Tuamotu-Gambier Islands, Marquesas, Australes Archipelago
Gabon
GA
Gambia
GM
Georgia
GE
Germany
DEincludes the European Central Bank
Ghana
GH
Gibraltar
GI
Greece
GR
Greenland
GL
Grenada
GD
Guatemala
GT
Guernsey
GG
Guinea
GN
Guinea-Bissau
GW
Guyana
GY
Haiti
HT
Honduras
HN
Hong Kong SAR
HK
Hungary
HU
Iceland
IS
India
IN
Indonesia
ID
International organisations
1C except the BIS which is included under Switzerland, and the ECB which is included under Germany
Iran
IR
Iraq
IQ
Ireland
IE
Isle of Man
IM
Israel
IL
Italy
IT
Jamaica
JM
Japan
JP
Jersey
JE
Jordan
JO
Kazakhstan
KZ
Kenya
KE
Kiribati
KIR
Kuwait
KWT
Kyrgyz Republic
KGZ
Laos
LAO
Latvia
LV
Lebanon
LB
Lesotho
LS
Liberia
LR
Libya
LY
Liechtenstein
LI
Lithuania
LT
Luxembourg
LU
Macau SAR
MO
Macedonia
MK
Madagascar
MG
Malawi
MW
Malaysia
MY includes Labuan International Offshore Financial Centre
Maldives
MV
Mali
ML
Malta
MT
Marshall Islands
MH
Mauritania
MR
Mauritius
MU
Mexico
MX
Micronesia
FM
Moldova
MD
Mongolia
MN
Montenegro
ME
Morocco
MA
Mozambique
MZ
Myanmar
MM
Namibia
NA
Nauru
NR
Nepal
NP
Netherlands
NL
Netherlands Antilles
AN includes Bonaire, Curacao, Saba, St. Eustatius and St. Maarten
New Caledonia
NC
New Zealand
NZ includes Cook Islands, Minor Islands, Niue, Ross Dependency and Tokelau
Nicaragua
NI
Niger
NE
Nigeria
NG
North Korea
KP
Norway
NO includes Bouvet Islands, Svalbard and Jan Mayen Islands
Official Monetary Authorities
1D
Oman
OM
Pakistan
PK
Palau
PW
Palestinian Territory
PS
Panama
PA includes Panama Canal Zone
Papua New Guinea
PG
Paraguay
PY
Peru
PE
Philippines
PH
Poland
PL
Portugal
PT includes the Azores and Madeira
Qatar
QA
Residual Africa and Middle East
2W includes Western Sahara
Residual Asia and Pacific
2O
Residual developed countries
2R
Residual Europe
2B
Residual Latin America and Caribbean
2H
Residual offshore centres
2N
Romania
RO
Russia
RU
Rwanda
RW
Samoa
WS
San Marino
SM
Sao Tome and Principe
ST
Saudi Arabia
SA
Senegal
SN
Serbia
RS
Seychelles
SC
Sierra Leone
SL
Singapore
SG
Slovakia
SK
Slovenia
SI
Solomon Islands
SB
Somalia
SO
South Africa
ZA
South Korea
KR
Spain
ES includes Balearic Islands, Canary Islands and Ceuta and Melilla
Sri Lanka
LK
St. Helena
SH includes Ascension, Gough and Tristan Da Cunha
St. Lucia
LC
St. Vincent
VC includes the Grenadines
Sudan
SD
Suriname
SR
Swaziland
SZ
Sweden
SE
Switzerland
CH includes Bank for International Settlements
Syria
SY
Taiwan, China
TW
Tajikistan
TJ
Tanzania
TZ
Thailand
TH
Timor Leste
TL
Togo
TG
Tonga
TO
Trinidad and Tobago
TT
Tunisia
TN
Turkey
TR
Turkmenistan
TM
Turks and Caicos
TC
Tuvalu
TV
Uganda
UG
Ukraine
UA
Unallocated
5M
United Arab Emirates
AE
United Kingdom
GB excludes Guernsey, Isle of Man and Jersey
United States
US includes American Samoa, Guam, Midway Islands, Northern Mariana Islands, Puerto Rico, US Virgin Islands and Wake Islands
Uruguay
UY
US Pacific Islands
PU includes Carolines, Howland and Baker, Kingman Reef, Palmyra and Jarvis and Johnston
Uzbekistan
UZ
Vanuatu
VU
Vatican
VA
Venezuela
VE
Vietnam
VN
Wallis and Futuna
WF
West Indies UK
1Z includes Anguilla, Antigua and Barbuda, British Virgin Islands, Montserrat and St. Christopher/St. Kitts - Nevis
Yemen
YE
Zambia
ZM
Zimbabwe
ZW
[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 RSE, defined benefit RSE, PST or ERF, the RSE licensee must separately provide the information required by the form for each RSE, defined benefit RSE, PST or ERF within its business operations.
[2] For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, an RSE licensee is nonetheless required to submit the information required no later than the due date.
[3] Refer also to Prudential Standard SPS 310 Audit and Related Matters (SPS 310).
[4] Refer to Prudential Standard SPS 510 Governance.
[5] For the purposes of this Reporting Standard, ‘small APRA fund’ means a superannuation entity that is a regulated superannuation fund, within the meaning of the SIS Act, which has fewer than five members and ‘single member approved deposit fund’ means a superannuation entity that is an approved deposit fund, within the meaning of the SIS Act, and has only one member.
[6] For the purposes of these instructions, ‘small APRA fund’ means a superannuation entity that is a regulated superannuation fund, within the meaning of the SIS Act, which has fewer than five members and ‘single member approved deposit fund’ means a superannuation entity that is an approved deposit fund, within the meaning of the SIS Act, and has only one member.