Superannuation Industry (Supervision) Regulations 1994

PART 9AB - ANNUAL PERFORMANCE ASSESSMENTS ETC.  

Division 9AB.1 - Preliminary  

REGULATION 9AB.5   MEANING OF STRATEGIC ASSET ALLOCATION  

9AB.5(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).

9AB.5(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.

9AB.5(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.

9AB.5(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.

9AB.5(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

9AB.5(4A)    

Subregulation (4B) applies if the Part 6A product is a lifecycle Part 6A product.

9AB.5(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

9AB.5(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) .

9AB.5(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.

9AB.5(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.

9AB.5(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

9AB.5(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.

9AB.5(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

9AB.5(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.

9AB.5(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.