(3) The performance measure for a Part 6A product for a financial year is the amount calculated using the following formula:
Start formula open bracket Actual return minus Benchmark return close bracket plus open bracket Benchmark RAFE minus Actual RAFE close bracket end formula
where:
actual RAFE means the representative administration fees and expenses for the Part 6A product in relation to the financial year.
actual return means the actual return for the Part 6A product for the lookback period for the Part 6A product in respect of the financial year.
benchmark RAFE means the benchmark RAFE for the Part 6A product in relation to the financial year.
benchmark return means the benchmark return for the Part 6A product for the lookback period for the Part 6A product in respect of the financial year.
APRA’s determination—subparagraph (2)(a)(ii)
(4) For the purposes of subparagraph (2)(a)(ii), APRA may make a determination, in writing, specifying:
(a) a Part 6A product; and
(b) the superannuation entity that offers the Part 6A product; and
(c) one or more financial years.
(5) In making the determination, APRA must consider whether any other Part 6A products that are offered by:
(a) the entity; or
(b) an associated entity (within the meaning of the Corporations Act 2001) of the entity;
have failed to meet the requirement in subsection 60D(1) of the Act in relation to any financial year.
(6) 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.
APRA’s determination—paragraph (2)(b)
(7) For the purposes of paragraph (2)(b), APRA may make a determination, in writing, specifying:
(a) a Part 6A product; and
(b) the superannuation entity that offers the Part 6A product; and
(c) a financial year; and
(d) a day occurring:
(i) after 15 August; and
(ii) on or before 31 August;
in the next financial year.
(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.
Hybrid platform TDP
(9) Subregulation (10) applies if the Part 6A product mentioned in subregulation (1) is a hybrid platform TDP.
(10) In applying subregulation (2) in relation to the hybrid platform TDP:
(a) work out 2 performance measures for the hybrid platform TDP, as follows:
(i) assume that the hybrid platform TDP were 2 separate Part 6A products;
(ii) assume that one of those separate products was a standard platform TDP, and had the characteristics of the hybrid platform TDP relating to it being offered through investment menus of the platform type;
(iii) assume that the other of those separate products was a trustee‑directed product that was not a platform TDP, and had the characteristics of the hybrid platform TDP relating to it being offered through investment menus of the generic type, the lifecycle option type, or both (as the case may be);
(iv) work out the performance measures for the 2 separate Part 6A products in accordance with subregulation (3); and
(b) treat subparagraph (2)(a)(i) as reading “both performance measures for the Part 6A product for the assessment year equal or exceed ‑0.005”.
9AB.11 Meaning of actual return—standard Part 6A products
(1) This regulation applies to standard Part 6A products.
(2) The actual return, for a Part 6A product for a lookback period for the product in respect of a financial year, is the amount calculated using the following formula, rounded to 10 decimal places (rounding up if the eleventh decimal place is 5 or more):
This formula calculates the actual return for the product
where:
n means the number of quarters in the lookback period, divided by 4.
return, in relation to a quarter, means:
(a) if paragraph (b) does not apply—the Part 6A product’s net investment return in relation to the quarter for the Part 6A product’s standard fees and costs arrangement in relation to the quarter; or
(b) if it is not possible to identify the Part 6A product’s net investment return in relation to the quarter from information available to APRA, but it is possible to identify the Part 6A product’s gross investment return net of fees in relation to the quarter from information available to APRA—the Part 6A product’s gross investment return net of fees in relation to the quarter for the Part 6A product’s standard fees and costs arrangement in relation to the quarter.
t represents a quarter in a consecutive sequence of quarters, where if t=1, the quarter is the first quarter that starts in the lookback period.
Trustee‑directed products
(3) Subregulation (4) applies if:
(a) the Part 6A product is a trustee‑directed product; and
(b) at the end of a quarter in the lookback period, there are no member assets supporting the Part 6A product that are referable to any of the investment pathways of the Part 6A product.
(4) Treat the return (as defined in subregulation (2)), in relation to the quarter, as zero.
(5) Subregulation (6) applies if:
(a) the Part 6A product is a trustee‑directed product that has 2 or more net investment returns or gross investment returns net of fees in relation to a quarter in the lookback period; and
(b) subregulation (4) does not apply in relation to the quarter.
(6) For the purposes of subregulation (2), treat the return (as defined in subregulation (2)), in relation to the quarter, as being the amount worked out under subregulation (7).
(7) For the purposes of subregulation (6), work out the amount as follows:
(a) first, work out a separate return (as defined in subregulation (2)) in relation to the quarter for each investment pathway of the Part 6A product, on the assumptions that:
(i) references in that definition to net investment return and gross investment return net of fees were references to such amounts to the extent that they relate to each investment pathway of the Part 6A product; and
(ii) references in that definition to the Part 6A product’s standard fees and costs arrangement were references to each investment pathway’s standard fees and costs arrangement;
(b) next, disregard any return worked out in accordance with paragraph (a) for an investment pathway of the Part 6A product, if there are no member assets supporting the Part 6A product that are referable to the investment pathway;
(c) next, identify the smallest of the returns worked out in accordance with paragraphs (a) and (b).
9AB.12 Meaning of actual return—lifecycle Part 6A products
(1) This regulation applies to lifecycle Part 6A products.
(2) The actual return, for a Part 6A product for a lookback period for the product in respect of a financial year, is the amount calculated using the following formula, rounded to 10 decimal places (rounding up if the eleventh decimal place is 5 or more):
This formula calculates the actual return for the product
where:
j represents a lifestage of the Part 6A product, in a consecutive sequence of lifestages of the Part 6A product, where:
(a) if j=1, the lifestage is the lifestage that applies to the youngest beneficiaries who hold the product; and
(b) subject to paragraph (c), the sequence proceeds in ascending order of the ages of those beneficiaries; and
(c) if there are 2 or more lifestages of the Part 6A product that apply to beneficiaries of the same age—the sequence proceeds in respect of those lifestages in the order specified by APRA in a determination under regulation 9AB.15.
J means the number of lifestages of the Part 6A product.
lifestage weight, in relation to a lifestage and a quarter, means the Part 6A product’s lifestage weight in relation to the quarter and the lifestage.
n means the number of quarters in the lookback period, divided by 4.
return, in relation to a quarter and a lifestage, means:
(a) if paragraph (b) does not apply—the Part 6A product’s net investment return in relation to the quarter and the lifestage, for the Part 6A product’s standard fees and costs arrangement in relation to the quarter; or
(b) if it is not possible to identify the Part 6A product’s net investment return in relation to the quarter and the lifestage from information available to APRA, but it is possible to identify the Part 6A product’s gross investment return net of fees in relation to the quarter and the lifestage from information available to APRA—the Part 6A product’s gross investment return net of fees in relation to the quarter and the lifestage, for the Part 6A product’s standard fees and costs arrangement in relation to the quarter.
t represents a quarter in a consecutive sequence of quarters, where if t=1, the quarter is the first quarter that starts in the lookback period.
Change of lifestages
(3) Subregulation (4) applies if:
(a) the following circumstances exist:
(i) a lifecycle Part 6A product has particular lifestages at the end of a quarter in a lookback period for the product in respect of a financial year;
(ii) the product has different lifestages at the end of a later quarter in the lookback period; and
(b) either or both of the following apply:
(i) the Part 6A product and the quarters are in a class of Part 6A products and quarters specified in a determination under subregulation (4A);
(ii) the Part 6A product and the quarters are specified in a determination under subregulation (5).
(4) Despite subregulation (2), the actual return, for the Part 6A product for the lookback period, is the amount calculated using the formula in subregulation (2), as modified in the way specified in the following determination:
(a) if only subparagraph (3)(b)(i) applies—the determination mentioned in that subparagraph;
(b) if only subparagraph (3)(b)(ii) applies—the determination mentioned in that subparagraph;
(c) if both subparagraphs (3)(b)(i) and (ii) apply—the determination mentioned in subparagraph (3)(b)(i).
(4A) For the purposes of subparagraph (3)(b)(i), APRA may, by legislative instrument, make a determination that:
(a) specifies classes of Part 6A products and quarters; and
(b) specifies modifications of the formula in subregulation (2) that APRA considers are reasonably necessary to reflect the circumstances mentioned in paragraph (3)(a) in respect of the specified classes of Part 6A products and quarters.
(5) For the purposes of subparagraph (3)(b)(ii), APRA may make a determination, in writing, that:
(a) specifies:
(i) a lifecycle Part 6A product; and
(ii) the superannuation entity that offers the Part 6A product; and
(iii) 2 quarters; and
(b) specifies modifications of the formula in subregulation (2) that APRA considers are reasonably necessary to reflect the circumstances mentioned in paragraph (3)(a) in respect of the specified Part 6A product and quarters.
(6) APRA must give a notice of a determination under subregulation (5) 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.
9AB.13 Meaning of benchmark return—standard Part 6A products
(1) This regulation applies to standard Part 6A products.
(2) The benchmark return, for a Part 6A product for a lookback period for the product in respect of a financial year, is the amount calculated using the following formula, rounded to 10 decimal places (rounding up if the eleventh decimal place is 5 or more):
A formula to calculate the benchmark return for the product
where:
a represents a covered asset class for the quarter, where the value of “a” corresponds to the number of the item of the table in regulation 9AB.17 relating to the quarter that identifies that covered asset class for the quarter.
Example: If a=2, then “a” represents the covered asset class identified in item 2 of the table in regulation 9AB.17 that relates to the quarter.
A means the number of covered asset classes identified in the table in regulation 9AB.17 that relates to the quarter.
ART, in relation to a covered asset class and a quarter, means the assumed rate of tax for the quarter for the covered asset class.
fee, in relation to a covered asset class and a quarter, means the assumed annual fee for the quarter for the covered asset class.
index, in relation to a covered asset class and a quarter, means the index of the covered asset class for the quarter.
n means the number of quarters in the lookback period, divided by 4.
SAA, in relation to a covered asset class and a quarter, means the Part 6A product’s strategic asset allocation in relation to the quarter to the covered asset class for the quarter.
t represents a quarter in a consecutive sequence of quarters, where if t=1, the quarter is the first quarter that starts in the lookback period.
Standard Part 6A products that report gross investment return net of fees
(3) Subregulation (4) applies in relation to a Part 6A product and a quarter if:
(a) it is not possible to identify the Part 6A product’s net investment return in relation to the quarter from information available to APRA; but
(b) it is possible to identify the Part 6A product’s gross investment return net of fees in relation to the quarter from information available to APRA.
(4) For the purposes of subregulation (2):
(a) treat ART, in relation to a covered asset class and the quarter, as being zero; and
(b) in working out index in relation to a covered asset class identified in item 24, 25 or 26 of the table in regulation 9AB.17 and the quarter by applying subregulation 9AB.5A(7), treat ART in that subregulation as being zero.
Trustee‑directed products
(5) Subregulation (6) applies in relation to a Part 6A product and a quarter if:
(a) the Part 6A product is a trustee‑directed product; and
(b) at the end of the quarter, there are no member assets supporting the Part 6A product that are referable to any of the investment pathways of the Part 6A product.
(6) For the purposes of subregulation (2), treat fee and index, in relation to all covered asset classes and the quarter, as being zero.
9AB.14 Meaning of benchmark return—lifecycle Part 6A products
(1) This regulation applies to lifecycle Part 6A products.
(2) The benchmark return, for a Part 6A product for a lookback period for the product in respect of a financial year, is the amount calculated using the following formula, rounded to 10 decimal places (rounding up if the eleventh decimal place is 5 or more):
A formula to calculate the benchmark return for the product
where:
a represents a covered asset class for the quarter, where the value of “a” corresponds to the number of the item of the table in regulation 9AB.17 relating to the quarter that identifies that covered asset class for the quarter.
Example: If a=2, then “a” represents the covered asset class identified in item 2 of the table in regulation 9AB.17 that relates to the quarter.
A means the number of covered asset classes identified in the table in regulation 9AB.17 that relates to the quarter.
ART, in relation to a covered asset class and a quarter, means the assumed rate of tax for the quarter for the covered asset class.
fee, in relation to a covered asset class and a quarter, means the assumed annual fee for the quarter for the covered asset class.
index, in relation to a covered asset class and a quarter, means the index of the covered asset class for the quarter.
j represents a lifestage of the Part 6A product, in a consecutive sequence of lifestages of the Part 6A product, where:
(a) if j=1, the lifestage is the lifestage that applies to the youngest beneficiaries who hold the product; and
(b) subject to paragraph (c), the sequence proceeds in ascending order of the ages of those beneficiaries; and
(c) if there are 2 or more lifestages of the Part 6A product that apply to beneficiaries of the same age—the sequence proceeds in respect of those lifestages in the order specified by APRA in a determination under regulation 9AB.15.
J means the number of lifestages of the Part 6A product.
lifestage weight, in relation to a lifestage and a quarter, means the Part 6A product’s lifestage weight in relation to the quarter and the lifestage.
n means the number of quarters in the lookback period, divided by 4.
SAA, in relation to a covered asset class, a lifestage and a quarter, means the Part 6A product’s strategic asset allocation in relation to the lifestage and the quarter to the covered asset class for the quarter.
t represents a quarter in a consecutive sequence of quarters, where if t=1, the quarter is the first quarter that starts in the lookback period.
Lifecycle Part 6A products that report gross investment return net of fees
(3) Subregulation (4) applies in relation to a lifestage and a quarter if:
(a) it is not possible to identify the Part 6A product’s net investment return in relation to the lifestage and the quarter from information available to APRA; but
(b) it is possible to identify the Part 6A product’s gross investment return net of fees in relation to the lifestage and the quarter from information available to APRA.
(4) For the purposes of subregulation (2):
(a) treat ART, in relation to a covered asset class and the quarter, as being zero; and
(b) in working out index in relation to a covered asset class identified in item 24, 25 or 26 of the table in regulation 9AB.17 and the quarter by applying subregulation 9AB.5A(7), treat ART in that subregulation as being zero.
Change of lifestages
(8) Subregulation (9) applies if:
(a) the following circumstances exist:
(i) a lifecycle Part 6A product has particular lifestages at the end of a quarter in a lookback period for the product in respect of a financial year;
(ii) the product has different lifestages at the end of a later quarter in the lookback period; and