(b) the market value at the end of the quarter of all member assets supporting the Part 6A product that are referable to an investment pathway of the Part 6A product.
9AB.5 Meaning of strategic asset allocation
(1) A Part 6A product’s strategic asset allocation in relation to a quarter to a covered asset class for the quarter is:
(a) unless paragraph (b) or (c) applies—the Part 6A product’s benchmark asset allocation in relation to the quarter to the covered asset class, as reported to APRA in accordance with the applicable asset allocation standard (expressed as a fraction); or
(b) unless paragraph (c) applies, if the Part 6A product does not have a benchmark asset allocation in relation to the quarter to the covered asset class—zero; or
(c) if the quarter is before the Part 6A product’s initial quarter—the product’s benchmark asset allocation in relation to the initial quarter to the covered asset class (expressed as a fraction).
(2) For the purposes of subregulation (1), if a benchmark asset allocation to a covered asset class does not identify an asset domicile type for the covered asset class:
(a) treat half of the amount of that benchmark asset allocation as identified with an Australian domicile type;
(b) treat half of the amount of that benchmark asset allocation as identified with an international domicile type; and
(c) where the benchmark asset allocation identifies a currency hedging ratio for the covered asset class (including a currency hedging ratio of zero)—treat all of the amount of that currency hedging ratio as identified with the international domicile type; and
(d) where the benchmark asset allocation does not identify a currency hedging ratio for the covered asset class:
(i) if the Part 6A product does not have a currency exposure in relation to the quarter—treat a currency hedging ratio of zero as identified with the international domicile type; or
(ii) if the Part 6A product has a currency exposure in relation to the quarter (including a currency exposure of zero)—treat a currency hedging ratio of the amount worked out under subregulation (3A) as identified with the international domicile type.
(3) For the purposes of subregulation (1), if a benchmark asset allocation to a covered asset class identifies the international domicile type with the covered asset class and does not identify a currency hedging ratio for the covered asset class:
(a) if the Part 6A product does not have a currency exposure in relation to the quarter—treat a currency hedging ratio of zero as identified with the international domicile type; or
(b) if the Part 6A product has a currency exposure in relation to the quarter (including a currency exposure of zero)—treat a currency hedging ratio of the amount worked out under subregulation (3A) as identified with the international domicile type.
(3A) For the purposes of subparagraph (2)(d)(ii) and paragraph (3)(b), work out the currency hedging ratio as follows:
(a) first, work out the Part 6A product’s strategic asset allocation, in relation to the quarter, to each covered asset class identified with the international domicile type;
(b) next, work out the sum of the strategic asset allocations worked out under paragraph (a);
(c) next, divide the currency exposure mentioned in subparagraph (2)(d)(ii) and paragraph (3)(b) by the result of paragraph (b);
(d) next, subtract the result of paragraph (c) from one.
If the result of paragraph (d) is less than zero, treat it as being zero.
(4) For the purposes of subregulation (1), if a benchmark asset allocation to a covered asset class does not identify an asset listing type for the covered asset class:
(a) treat half of the amount of that benchmark asset allocation as identified with a listed type; and
(b) treat half of the amount of that benchmark asset allocation as identified with an unlisted type.
Lifecycle Part 6A products
(4A) Subregulation (4B) applies if the Part 6A product is a lifecycle Part 6A product.
(4B) Despite subregulations (1) to (4), work out the strategic asset allocation of a lifecycle Part 6A product in relation to a lifestage and a quarter to a covered asset class for the quarter on the assumptions that:
(a) those subregulations apply separately in respect of each lifestage of the Part 6A product; and
(b) in applying those subregulations to a lifestage, references in this regulation to amounts reported to APRA were references to such amounts to the extent that they relate to that lifestage.
APRA’s determination that information relates to particular concepts in asset allocation standards
(5) Subregulation (6) applies if it is not possible to work out a Part 6A product’s strategic asset allocation in relation to a quarter to a covered asset class for the quarter because it is not clear whether particular information relevant to that strategic asset allocation relates to a particular concept in an asset allocation standard.
Note: It may be possible to work out the strategic asset allocation under subregulations (2) to (4).
(6) For the purposes of this regulation, treat the information as relating to a particular concept in an asset allocation standard if a determination under subregulation (7):
(a) specifies:
(i) the Part 6A product; and
(ii) the superannuation entity that offers the Part 6A product; and
(iii) the covered asset class; and
(iv) the asset allocation standard; and
(v) the quarter; and
(b) states that the information relates to the concept in the asset allocation standard.
(7) For the purposes of subregulation (6), APRA may make a determination, in writing, that:
(a) specifies:
(i) a Part 6A product; and
(ii) the superannuation entity that offers the Part 6A product; and
(iii) a covered asset class; and
(iv) an asset allocation standard; and
(v) a quarter; and
(b) states that specified information relates to a specified concept in the asset allocation standard.
(8) APRA must give a notice of the determination to the trustee of the superannuation entity specified in the determination. The notice must:
(a) be in writing; and
(b) include a copy of the determination.
Reporting other than on a quarterly basis
(9) Subregulation (10) applies in relation to a quarter (the current quarter) if:
(a) an asset allocation standard requires a Part 6A product’s benchmark asset allocation in relation to a reporting period (within the meaning of that standard) to be reported to APRA; and
(b) that reporting period:
(i) is not a quarter; but
(ii) starts during the current quarter; and
(c) no asset allocation standard requires the Part 6A product’s benchmark asset allocation in relation to a different reporting period that starts:
(i) during the current quarter; and
(ii) after the start of the reporting period mentioned in paragraph (a);
to be reported to APRA.
(10) For the purposes of working out the Part 6A product’s strategic asset allocation in relation to the current quarter to a covered asset class for the quarter, treat:
(a) a reference in this regulation to the Part 6A product’s benchmark asset allocation, in relation to the quarter, to the covered asset class as being a reference to the Part 6A product’s benchmark asset allocation, in relation to the reporting period mentioned in paragraph (9)(a), to the covered asset class; and
(b) a reference in subparagraph (6)(a)(v) or (7)(a)(v) to a quarter as being a reference to the reporting period.
Strategic asset allocations add up to less than 1
(11) Subregulation (12) applies if, in relation to a quarter, the sum of the strategic asset allocations of a standard Part 6A product in relation to the quarter, or a lifecycle Part 6A product in relation to a lifestage and the quarter, to all covered asset classes for the quarter is less than 1.
(12) For the purposes of this regulation, treat the strategic asset allocation of the standard Part 6A product in relation to the quarter, or the lifecycle Part 6A product in relation to the lifestage and the quarter, to each covered asset class for the quarter as being reasonably adjusted such that the sum mentioned in subregulation (11) is 1.
9AB.5A Meaning of index
(1) Index, of a covered asset class for a quarter, means the amount calculated using the following formula, rounded to 10 decimal places (rounding up if the eleventh decimal place is 5 or more):
Start formula start fraction Value at the end of the quarter of the assumed index for the covered asset class over Value at the end of the previous quarter of the assumed index for the covered asset class end fraction minus 1 end formula
Note: For a covered asset class for a quarter that is identified in item 24, 25 or 26 of the table in regulation 9AB.17 (alternatives, defensive alternatives or growth alternatives asset class), see subregulations (4) to (7) of this regulation.
Late reporting of unlisted infrastructure indices
(2) Subregulation (3) applies in relation to a covered asset class for a quarter if:
(a) the covered asset class is identified in item 14 or 15 of the table in regulation 9AB.17; and
(b) the value at the end of the quarter of the assumed index for the covered asset class is not publicly available earlier than 36 days after the end of the financial year in which the quarter occurs.
(3) For the purposes of calculating the index of the covered asset class for the quarter:
(a) treat the value at the end of the quarter of the assumed index for the covered asset class as being the value at the end of the quarter of the assumed index for the covered asset class identified in item 10 of the table in regulation 9AB.17; and
(b) treat the value at the end of the previous quarter of the assumed index for the covered asset class as being the value at the end of the previous quarter of the assumed index for the covered asset class identified in item 10 of the table in regulation 9AB.17.
Index for alternatives, defensive alternatives and growth alternatives
(4) Subregulations (5), (6) and (7) apply in relation to a covered asset class for a quarter if the covered asset class is identified in item 24, 25 or 26 of the table in regulation 9AB.17.
(5) Despite subregulation (1), the index of the covered asset class for a quarter is the sum of the following:
(a) the covered asset class’s IEH percentage (see subregulation (6)) of the adjusted index (see subregulation (7)) of the covered asset class identified in item 2 (International Equity (hedged)) of the table in regulation 9AB.17 for the quarter;
(b) the covered asset class’s IEU percentage (see subregulation (6)) of the adjusted index (see subregulation (7)) of the covered asset class identified in item 5 (International Equity (unhedged)) of that table for the quarter;
(c) the covered asset class’s IFI percentage (see subregulation (6)) of the adjusted index (see subregulation (7)) of the covered asset class identified in item 19 (International Fixed Interest) of that table for the quarter.
(6) The IEH percentage, IEU percentage and IFI percentage of the covered asset class mentioned in subregulation (4) is that identified in the item of the following table that has the covered asset class item number and covered asset class description that corresponds to the covered asset class:
Component percentages for calculation of adjusted index for alternatives
Covered asset class item Covered asset class description IEH percentage IEU percentage IFI percentage
24 Alternatives 25% 25% 50%
25 Defensive alternatives 12.5% 12.5% 75%
26 Growth alternatives 37.5% 37.5% 25%
(7) For the purposes of paragraphs (5)(a), (b) and (c), work out the adjusted index of a covered asset class for a quarter using the following formula, rounded to 10 decimal places (rounding up if the eleventh decimal place is 5 or more):
This formula works out the adjusted index of a covered asset class for a quarter
where:
ART means the assumed rate of tax for the quarter for the covered asset class.
fee means the assumed annual fee for the quarter for the covered asset class.
index means the index of the covered asset class for the quarter.
9AB.6 Meaning of lookback period
(1) The lookback period for a Part 6A product in respect of a financial year means the period that:
(a) starts on the later of the following:
(i) the start of the first quarter in relation to which the trustee of the superannuation entity that offered the Part 6A product reported to APRA, in accordance with the applicable investment performance standard, a net investment return or gross investment return net of fees of the product;
(ii) if the financial year is the 2020‑21 financial year—the 1 July that is 6 years before 1 July in the financial year;
(iii) if the financial year is the 2021‑22 financial year—the 1 July that is 7 years before 1 July in the financial year;
(iv) if the financial year is the 2022‑23 financial year—the 1 July that is 8 years before 1 July in the financial year;
(v) if the financial year is the 2023‑24 financial year or a later financial year—the 1 July that is 9 years before 1 July in the financial year; and
(b) ends on 30 June in the financial year.
Note: The lookback period will be 10 financial years, unless subparagraph (a)(i), (ii), (iii) or (iv) applies.
(2) For the purposes of subparagraph (1)(a)(i), in determining the first quarter mentioned in that subparagraph, disregard a quarter if:
(a) there was not, for the entire duration of the quarter, at least one beneficiary holding the Part 6A product; or
(b) the superannuation entity was not, for the entire duration of the quarter, offering the Part 6A product as potentially generating returns.
9AB.7 Specified circumstances and provisions where multiple Part 6A products treated as one Part 6A product—subsection 60G(1) of Act
(1) For the purposes of subsection 60G(1) of the Act, subregulations (2) and (3) of this regulation specify:
(a) a kind of circumstances; and
(b) provisions of Part 6A of the Act in relation to that kind of circumstances.
Note: Subsection 60G(2) of the Act provides that in those kinds of circumstances, for the purposes of those provisions, 2 or more Part 6A products are treated as being one Part 6A product.
(2) This subregulation specifies the kind of circumstances that exist where:
(a) a determination under subregulation (4) is in force in relation to 2 or more Part 6A products; and
(b) APRA has given notice of the determination in accordance with subregulation (6).
(3) This subregulation specifies all the provisions of Part 6A of the Act (apart from section 60G) in relation to the kind of circumstances specified in subregulation (2).
APRA’s determination
(4) For the purposes of paragraph (2)(a), APRA may make a determination, in writing, in relation to 2 or more specified Part 6A products offered by one or more specified regulated superannuation funds, if APRA considers that making the determination is appropriate in the circumstances.
Note: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.
(5) For the purposes of APRA making a determination under subregulation (4) in the period:
(a) starting on 15 August in a financial year; and
(b) ending on 31 August in the financial year;
APRA may, in working out whether the making of the determination is appropriate in the circumstances, assume that the information available to it on that 15 August is the only information that is relevant to the determination.
(6) APRA must give a notice of the determination to each of the trustees of the regulated superannuation funds specified in the determination. The notice must:
(a) be in writing; and
(b) include a copy of the determination.
Division 9AB.2—Performance assessments
9AB.8 Period for making and giving annual performance assessment—paragraph 60C(4)(b) of Act
For the purposes of paragraph 60C(4)(b) of the Act, the period mentioned in that paragraph is the period that:
(a) starts immediately after the end of the financial year mentioned in that paragraph; and
(b) ends on the following 31 August.
9AB.9 Specified classes of Part 6A product
(1) For the purposes of subsection 60D(1) of the Act, the following subregulations specify classes of Part 6A product in relation to a financial year.
Standard Part 6A products
(2) A class of Part 6A product is specified in relation to a financial year if each Part 6A product in the class is a standard Part 6A product throughout the financial year.
Lifecycle Part 6A products
(3) A class of Part 6A product is specified in relation to a financial year if each Part 6A product in the class is a lifecycle Part 6A product throughout the financial year.
9AB.10 Requirements for assessment
(1) For the purposes of subsection 60D(1) of the Act, subregulation (2) specifies a requirement for all specified classes of Part 6A product in relation to a financial year (the assessment year).
(2) The requirement is that:
(a) information available to APRA on 15 August in the financial year after the assessment year shows that either or both of the following conditions are met:
(i) the performance measure for the Part 6A product for the assessment year equals or exceeds ‑0.005;
(ii) if the number of whole financial years in the lookback period for the Part 6A product in respect of the assessment year is less than 7—there is no determination in force under subregulation (4) that specifies the Part 6A product, the superannuation entity that offers the Part 6A product and the assessment year; or
(b) if APRA makes a determination under subregulation (7) specifying the Part 6A product, the superannuation entity that offers the Part 6A product and the assessment year—information available to APRA on the day specified in the determination shows that either or both of the conditions mentioned in paragraph (a) of this subregulation are met.