Document ID: chunk:federal_register_of_legislation:F2023L01066:reg:8
Version: federal_register_of_legislation:F2023L01066
Segment Type: reg
Provision Reference: reg 8
Character Range: 5718–8249

8               Modifications to the benchmark return formula b
       (1)          The benchmark return for a lifecycle Part 6A product is the amount calculated using the benchmark return formula, as modified in the way specified in subsections (2) to (5).
       (2)          In relation to a quarter during which a change event occurs, modify the benchmark return formula by substituting the definition of "lifestage weight" in subregulation 9AB.4(1) of the Regulations with:
"(1)  The lifestage weight of a Part 6A product for the period from:
(a) the beginning of the quarter to Day X is:
(i) the market value at the end of the previous quarter of all investments supporting the Part 6A product that are referable to the lifestage;
           divided by;
              (ii)         the market value at the end of the previous quarter of all investments supporting the Part 6A product that are referable to a lifestage of the Part 6A product;
       (b)  the change event to the end of the quarter is:
              (i)            the market value at the end of the current quarter of all investments supporting the Part 6A product that are referable to the lifestage;
           divided by;
              (ii)         the market value at the end of the current quarter of all investments supporting the Part 6A product that are referable to a lifestage of the Part 6A product."
       (3)          In relation to a quarter during which a change  event occurs, for the part of a quarter from change  event to end of the quarter, modify the benchmark return formula by substituting "SAAa,j,t-1" with  "SAAa,j,t".
       (4)          Subsection (5) applies if a change event occurs at a time other than the end of a quarter.
       (5)          For the purposes of the definition of index in regulation 9AB.5A of the Regulations, if the value of the assumed index for a covered asset class with 'unlisted' in its description in the table in subregulation 9AB.17(7) of the Regulations is not available on Day X, for the periods from:
(a)          the start of the quarter to Day X; and
           (b)          the change event to the end of the quarter,
       derive an index value at Day X through linear interpolation using the index values available immediately before and after Day X.
Note: The derived index value will then be used in the formula specified in the definition of index in regulation 9AB.5A of the Regulations to calculate an index amount. The index amount will in turn be used in the benchmark return formula.