Document ID: chunk:federal_register_of_legislation:F2015L01008:body:0:p8
Version: federal_register_of_legislation:F2015L01008
Segment Type: other
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Character Range: 20069–23426

or the return for the lifecycle stage of a lifecycle MySuper product (or predecessor product), as relevant, in column 2.

column 2                                    Calculate the return in column 2 as the net return of a representative member.

                                            The net return of a representative member is the net investment return of a representative member minus administration fees, costs and taxes of a representative member and minus advice fees, costs and taxes of a representative member, where:

                                                * administration fees, costs and taxes represents the sum of administration fees, indirect cost ratio administration costs, other administration costs and administration-related tax expense/benefit; and

                                                * advice fees, costs and taxes represents the sum of advice fees, indirect cost ratio advice costs, other advice costs and advice-related tax expense/benefit.

                                            Note that the calculation of the net return of a representative member must be consistent with the equivalent requirements for calculating the net return in Reporting Standard SRS 702.0 Investment Performance using the representative member to convert fees charged on a flat dollar basis into fees charged on a percentage of assets.

                                            Where there are multiple administration fee levels, or administration fees are subsidised by additional employer contributions, report the highest fee level and the fee payable from all sources, not only the fee paid by the member.

                                            Where the fees and costs have changed over time, the relevant administration fees, costs and taxes and advice fees, costs and taxes that were in place for the date reported in column 1 must be used in the net return calculation for that year.

Item 2                                      For each date reported in item 2 column 1, report the 'moving average return'[14] for the non-lifecycle MySuper product or the 'moving average return' for the lifecycle stage of a lifecycle MySuper product, as relevant, in column 3. Calculate the 'moving average return' in column 3 as:

column 3                                    Where:

                                                 * t is the year reported in item 2 column 1;

                                                 * rMA,t is the moving average return calculated as at year t over the prior ten years (year t, t-1, t-2,...,t-9); and

                                                 * rt-i is the net return for year t-i where i = 0,...,9 (i.e. year t, t-1, t-2,…, t-9).

                                            If the net return does not exist and cannot be calculated for all years t, t-1, t-2,…, t-9, the moving average return for year t must not be calculated.

                                            For example, if the MySuper product has only existed for four years, the ten year moving average must not be calculated as ten years of history do not exist.

Item 2                                      For each date reported in item 2 column 1, report the 'moving average return target'[15] for the non-lifecycle MySuper product or the 'moving average return target' for the lifecycle stage of