Document ID: chunk:federal_register_of_legislation:F2023L00591:front:0:p7
Version: federal_register_of_legislation:F2023L00591
Segment Type: other
Provision Reference: 
Character Range: 16169–19441

type 'Australian Domicile'. Where the investment strategic sector international economy type is not specified, report investment strategic sector domicile type as 'Not Specified'.

Where the investment option type is Separately Managed Account or Managed Discretionary Account, report the asset allocation of the model portfolio.

Strategic subsector
Report the benchmark allocation to each subsector allocation on an additional row for each combination of strategic sector and strategic subsector, with the subsector information reported in columns 6 to 9 and the information of the strategic sector to which it underlies reported in columns 1 to 5. The sum of the benchmark allocations reported for each strategic subsector should equal the benchmark allocation for the relevant strategic sector.

For example, where the strategic sector:

a) listing type, domicile type and international economy type are 'Not Specified', or

    b) allocation within the reported strategic sector includes other strategic sectors e.g. 'Alternatives' includes allocation to 'Infrastructure' or 'Fixed Income' includes allocation to both 'Fixed Income Excluding Credit' and 'Credit',

report an asset allocation target at the reporting date to the strategic subsector, strategic subsector listing type, strategic subsector domicile type and strategic subsector international economy type for each strategic subsector approved by the board, committee or individual with investment delegations under the investment governance framework of the RSE licensee. If 'Currency Exposure' is reported for strategic sector, do not report a strategic subsector allocation.

Currency exposure and currency hedging ratio
Report either a benchmark allocation to currency exposure or currency hedging ratios, with the approach determined by referent to the RSE licensee's investment strategy:

      a)   If currency exposure targets are set at the investment option level, report the benchmark currency exposure in column 10 using 'Currency Exposure' as the strategic sector. The investment benchmark allocation (%) to 'Currency Exposure' is treated separately and does not contribute to the total benchmark allocations of the investment option.

      b)   If currency exposure targets or hedging ratios are set at the asset class level, report a currency hedging ratio (%) in column 13 where investment domicile type 'International Domicile' is reported in column 4. Where investment domicile type 'Not Specified' is reported in column 4 and currency hedging targets are set at an asset class level or investment option level, report the investment currency hedging ratio (%) in column 13 as the target level of currency hedging for any internationally domiciled assets within that allocation.

The table below summarises the reporting approach for different scenarios for reporting currency exposure or currency hedging ratios:

                                              Set at an asset class level                                                                                                      Set at an option level

RSE licensee sets a currency hedging target   Report the applicable hedging ratio for each International Domicile or Not Specified Domicile asset class in table 1