Document ID: chunk:federal_register_of_legislation:F2015L01984:body:0:p17
Version: federal_register_of_legislation:F2015L01984
Segment Type: other
Provision Reference: 
Character Range: 48955–52099

Represents developing countries and transition economies as defined by the United Nations Conference on Trade and Development under the economic groupings classification.

Developed markets  Represents developed economies as defined by the United Nations conference on Trade and Development under the economic groupings classification. Excludes: Australia.

Investment vehicles

Cash management trust           Represents a unit trust which is governed by a trust deed which generally confines its investments (as authorised by the trust deed) to financial securities available through the short-term money market. Cash management trusts issue units in the trust that are redeemable by the unit holder on demand.

Life company guaranteed         Represents the provision of benefits payable under an investment account contract, where an investment account contract is a contract within the meaning given in s. 14 (2) of the Life Insurance Act 1995.

Life company investment linked  Represents the provision of benefits payable under an investment-linked contract, where an investment-linked contract is a contract within the meaning given in s. 14 (4) of the Life Insurance Act 1995.

Life company other              Represents any investment in a life company that does not otherwise fall into the definition of 'life company guaranteed' or 'life company investment linked'.

Listed retail trust          Represents a collective investment vehicle with units on issue listed on an Australian or an international stock exchange which provides exposure to a diversified portfolio of investments and can be accessed by retail clients, at low entry levels, as defined in the Corporations Act 2001.

Pooled superannuation trust  Represents a type of collective investment trust where an investment manager invests the assets of superannuation funds, approved deposit funds and other pooled superannuation trusts. Excludes: unitised investments with life companies where the original or primary investment is an insurance or investment policy.

Unlisted retail trust        Represents a collective investment vehicle that is not listed on an Australian or international stock exchange, provides exposure to a diversified portfolio of investments and can be accessed by retail clients, at low entry levels, as defined in the Corporations Act 2001.

Wholesale trust              Represents a collective investment vehicle that provides exposure to a diversified portfolio of investments and can be accessed by wholesale clients only, at high entry levels, as defined in the Corporations Act 2001.

Counterparty credit ratings

The counterparty grades are used in classifying the credit rating of debt investments. An RSE licensee must directly request credit grades from the counterparty or investment manager, and must not rely on consumer rating agencies which rate collective investments.

Where an RSE has investments with multiple ratings from two or more rating agencies, the RSE licensee must consistently apply the lowest rating of a single agency whenever the individual ratings conflict.

The counterparty credit ratings used in