The issue is that any Static Mesh Components on an Actor spawned in a Child Actor Component appear at (0,0,0).
Steps to reproduce:
New project
New Actor (we’ll call it Inner)
Add a Static Mesh Component to Inner and enable physics, set it to use any mesh you like
New Actor (Outer)
Add a Child Actor Component to Outer and set the child actor class to Inner
In level blueprint Begin Play, spawn an Outer after a Delay (this Delay is important too) at somewhere other than origin.
If this is done correctly, the physics enabled static mesh will spawn at (0,0,0) even though any other components (like particle effects) will spawn at the correct location. This problem doesn’t occur if physics is not enabled.
Thank you for the report. I was easily able to reproduce this issue and I’ve created JIRA UE-31612. Our developers will be investigating further and we will post here with updates as we have them.
As a workaround, you can keep the physics of ‘Inner’ disabled and then enable it inside of the ‘Inner’ Event Graph with a slight delay of 0.1 seconds on Begin Play. I hope that helps for the time being.