SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - REG 9AB.13 Meaning of benchmark return --standard Part 6A products

SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - REG 9AB.13

  (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):

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.