GetDistanceToBody does not use BodyInstance own transform

I was investigating UInstancedStaticMeshComponent when bumped into it. In GetDistanceToBody code:

PxTransform PCompTM(U2PTransform(OwnerComponent->ComponentToWorld));

so all instances of UInstancedStaticMeshComponent end up having same distance to any point. Is this a correct behavior or a bug? If correct, why and is there other simple way to measure distance to point without replicating GetDistanceToBody source?