Hierarchical Instanced Static Mesh appears to be offset

When using an instanced static mesh, it appears that the location can differ from that of a static mesh that is created in the same manner.

1. Download the attached project
2. Open the project
3. Click on the ring in the level
4. Locate the option "Use Intanceing" in the details panel for the actor "Distributor"
5. Locate the camera in the level (It will be pointing at the area where the issue will occur)
6. Toggle the boolean

Result: When the actor is set to using Instanced static meshes it appears to have one offset mesh
Expected: The Instanced static mesh and the static meshes versions of the ring would match up (The static mesh version of the ring does not having any offset pieces)