Instanced Static mesh does not LOD at the same screen distance as standalone mesh

DESCRIPTION: When using instanced static mesh component in a blueprint that has LODs the normal distances for LODs are not reflected for the instanced static mesh component.

AH Post: https://answers.unrealengine.com/questions/118188/instanced-static-meshes-do-not-lod-properly.html

ATTACHED: Test LOD asset

ENVIRONMENT:
OS: Windows 8.1
PROCESSOR: Intel(R) Xeon(R) CPU E5-2620 @ 2.10GHz
MEMORY: 32GB RAM
GRAPHICS: NVIDIA GeForce GTX 770

FREQUENCY: 3/3
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REPRO STEPS:

• Open UE4
• Import a mesh with LODs
• Create a Blueprint with a Instanced Static Mesh
• Place in scene next to static mesh LOD

Expected: The mesh LODs will LOD at the same distance

RESULTS: As it stands the LODs are not equal for instance static meshes. The screen distance LODs at different distances than the static mesh version where the LOD screen distances are set.

Instanced static meshes do not LOD properly

Instanced static meshes do not LOD properly