Document ID: chunk:federal_register_of_legislation:F2015L01011:body:0:p9
Version: federal_register_of_legislation:F2015L01011
Segment Type: other
Provision Reference: 
Character Range: 23856–26832

the actual holdings of the first non-connected entity and identify the asset class(es) of these holdings. For example, the cash position in an equity portfolio must be reported as cash.

As look through reporting is not required for hedge fund investments, the information reported need only cover the investments held by the RSE. Hedge fund investments must be reported in the asset class other.

Item 3              Report indirectly held investments in item 3. Directly held investments must be reported in item 2.

                    For item 3 report, for each combination of asset class type, asset domicile type and asset listing type: the asset class type in column 1, the asset domicile type in column 2, the asset listing type in column 3, the value of the investment in column 4, the proportion of the investment which is currency hedged in column 5 and the portion of the investment which is invested via individually managed mandates in column 6.

                    When reporting indirectly held investments, apportion the value of the market exposure of any derivative contracts within the indirectly held investment to the asset class type(s) to which the derivatives relate. The apportionment will enable the net asset value of the indirectly held investment to be reported in item 3, column 4.

                    If derivative contracts are used within an indirectly held investment to hedge currency exposure, report the percentage of the indirectly held investment's net asset exposure that is currency hedged (refer to item 3, column 5).

                    The proportion of the investment which is currency hedged must be reported in item 3, column 5 at the same level that it is implemented. If an RSE licensee implements currency hedging at an investment option level, the same percentage must be reported for all the international asset classes within the option. Likewise, for RSE licensees that implement currency hedging at asset class level, reporting to APRA must reflect currency hedging for that particular asset class.

                    When apportioning the value of indirectly held investments between asset class types, apportion using asset valuations based on Australian Accounting Standards. If this information is not available, apportion the value of indirectly held investments using the effective exposure of assets.

                    Item 3.1 is a derived item. Report total value of indirectly held investments in item 3.1 column 4 as equal to the sum of values reported in item 3 column 4 and the total value of indirectly held investments which is invested via individually managed mandates in item 3.1 column 6 as the sum of the values reported in item 3 column 6.

                    The asset class types are: cash, fixed income, equity, property, infrastructure, commodities and 'other'.

                    The asset domicile types are: Australia domicile, international domicile and 'not applicable'. Where