Call us on

08 8333 2488

SMSF Investment Strategy Service

Is your Investment Strategy compliant and up to date?  Unsure, confused, worried?  Take advantage of our SMSF Investment Strategy Service

What is an Investment Strategy?
An investment strategy provides you and other trustees with a framework for making investment decisions.  When preparing an investment strategy, you as Trustee must consider many factors that will affect the funds' ability to meet the Sole Purpose Test of generating retirement benefits for the members of the fund, or death benefits for their dependents   The trustees must determine, evaluate and record the following factors:
  • the objectives of the fund
  • the investment methods by which the investment objectives will be achieved
  • the members tolerance to risk
  • the members’ needs and circumstances
  • the risk and likely return from investments
  • the diversification of the funds’ assets
  • the liquidity of the funds’ assets
  • the funds’ ability to pay benefits
  • the funds’ ability to meet other liabilities
  • the funds’ use of reserves and derivatives
  • the consideration of insurance for all members

The objective of the strategy is to enable trustees to demonstrate that they have considered the following issues; how best to invest the assets of  the fund, that they have arrived at a strategy that suits the needs of the members of the fund, and that the investments held in the fund comply with the regulations.

Why all the attention on Investment Strategies now?

Since the 1990s there has been a requirement for SMSFs to have a documented investment strategy.  In the past, administrators and auditors have generally assumed that trustees have in place an adequate investment strategy and have not asked to view the document.  In many cases a document unfortunately did not exist because many trustees were unsure as to who is the right person to generate the investment strategy, the accountant or a financial adviser?

The issue for trustees is that they are ultimately responsible to ensure that an investment strategy is in place.  This is particularly so since changes were made to the legislation in 2012.  As Trustee of your SMSF you are now required to ensure that a written investment strategy has been prepared and is reviewed on a regular basis.  Our experience is that auditors are now asking to view the investment strategy and that an appropriate investment strategy will be an audit requirement.

If your fund already has an investment strategy in place it may need updating to ensure that it complies with the current legislation.  The new legislation includes the need for trustees to consider whether the members require life insurance cover.

What can we do for you?
At Wakefield Partners we are able to provide you with a compliant investment strategy that includes a set of trustee minutes to record the adoption of the strategy.  Our process involves receiving information from you and developing your personalised Investment Strategy.  This service does not involve providing any investment advice; you can find out more about our Financial Planning services in our related tabs.

If you would like to discuss how we can assist you in the development of your SMSF's Investment Strategy please contact us and speak to one of our advisers.