Investment strategies for SMSFs remain a key focus of the ATO. They have provided guidance for their expectations in relation to a trustee’s investment strategy process and documentation.
One of your responsibilities as a trustee 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.
Need assistance with your SMSF? Watch our information session recording above, assess the SMSF investment strategy review options on this page, and contact us for assistance.
What’s involved in reviewing your investment strategy?
To ensure that you meet your responsibilities and that your fund remains compliant, we recommend that 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.
Watch this video to learn what factors your SMSF’s investment strategy needs to take into account (Source: https://www.ato.gov.au/super/self-managed-super-funds/investing/your-investment-strategy)
How can Bentleys help?
Preparing or reviewing an investment strategy is an important task for a trustee, and as such we strongly recommend that 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 that 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 have tailored services that will meet your needs.
Below are our services tailored to the needs of SMSF trustees.
| Service | Details | |
|---|---|---|
| FREE SMSF Investment Strategy Information Session (online recording) | Bentleys have produced investment strategy information sessions that provided: - an overview so that you can clearly understand your obligations in regard to your investment strategy; - a brief summary of your responsibilities as an SMSF trustee generally; - information on the options for reviewing and updating your investment strategy. An online recording of the information session is available. | |
| SMSF Investment Strategy Review | If you don’t currently have a licenced financial advisor, Bentleys can provide this service to you upon request. We have licensed advisers across our offices who can assist you with your investment strategy review. | |
| SMSF Investment Strategy Template (for completion by the trustees) | If your investment strategy requires updating and you are comfortable doing this yourself, we can provide you with a template. Note that Bentleys guidance in this case will be limited to ensuring your chosen strategy is documented correctly only. Advice cannot be provided on your strategy unless you engage a licenced financial advisor. We strongly recommend you access the online recording of the information session if you intend to review and/or prepare your own investment strategy. |