SMSF investment strategies in Australia
The ATO is increasingly focusing on SMSF investment strategies, and have detailed their expectations for trustees’ investment strategy processes and documentation.
As a trustee, one of your responsibilities is to manage the fund’s investments while ensuring that investment holdings align with the fund’s investment strategy. SMSF trustees are also required by law to document the investment strategy for the making and holding of investments.
At a minimum, the investment strategy must consider risk, return, liquidity, diversification, ability to discharge liabilities and insurance.
What’s involved in reviewing your investment strategy?
To ensure you meet your responsibilities and your fund remains compliant, we recommend you – in your capacity as a trustee – review your current investment strategy. You need to confirm:
- your strategy has been well thought out and is relevant for your circumstances; and
- the documentation meets the requirements and enables your auditor to clearly see how the requirements have been met.
Your investment strategy should be reviewed annually, or more often if your circumstances change.
How can Bentleys help?
Preparing or reviewing an investment strategy is an important task for a trustee, and as such, we strongly recommend you seek professional advice from a licenced financial adviser. If you do not have a licensed financial adviser, we can refer you to one.
We acknowledge some trustees are quite comfortable undertaking tasks such as these themselves, and this is certainly an option.
Whether you use a financial adviser or complete the review yourself, Bentleys has tailored services that will meet your needs.