Strategy Builder
Self-Managed Super Fund Investment Strategy Compliance Made Simple.
Compliance doesn’t need to be expensive, but it is necessary. Strategy Builder helps you to build your own SMSF Investment Strategies or build them for your clients. It will guide and prompt you to create a tailored document that meets your compliance and management requirements.
Your customised strategy document will have:
SMSF details
Objectives
Target asset allocation ranges and charts
Investment strategy characteristics
Considerations taken by the trustees
A tailored document for your specific SMSF
Strategy Elements and Requirements
A key area of responsibility for trustees of self-managed superannuation funds (SMSFs) is investment management. The Superannuation Industry (Supervision) Act 1993 (SISA) places certain duties and responsibilities on trustees when making investment decisions. The aim being to protect and increase member benefits over time, for retirement purposes.
The trustees of every SMSF are required to prepare and implement an investment strategy, for their superannuation fund. The SMSF auditor is required to check annually that the trustees have an Investment Strategy. The strategy needs to reflect the purpose and circumstances of the SMSF and have particular regard to:
- Investing in such a way as to maximise member returns with regard to the risk associated in holding various investments, including the economic climate at the time of investment or subsequent review;
- Appropriate diversification (or reasons for limited diversification) and the benefits of investing across a number of asset classes, for example, shares, property, fixed deposit in a long-term investment strategy;
- Ability of the fund to discharge existing and prospective liabilities, and the liquidity of the fund’s investment, having regard to expected cash flow requirements.
- Insurance consideration for members (SIS Reg 4.09(2)(e)).
An appropriate investment strategy will set out the investment objectives of the SMSF and detail the investment methods the trustees will adopt to achieve these objectives.
