The Investment Strategy sets out the guidelines for
how the money within the Fund will be invested. Even
if your deed allows a certain investment, if the
strategy does not, then you cannot hold that
investment. And if your fund contains high risk
investments such as Gearing or Warrants, then you
also are required to have a Risk Management
Strategy.
Your Current Strategy
Does your SMSF’s Investment Strategy SPECIFICALLY
ALLOW all the investments currently held by the
fund?
In our experience most funds have either no clear
Investment Strategy, or they have a generic strategy
that includes broad statements such as ‘we will
invest 0% to 100% in Shares’.
The ATO will no longer accept this as a valid
Investment Strategy. All SMSFs will require a
specific Investment Strategy tailored to the
individual Needs, Objectives and Risk Profiles for
your Fund. In some cases, it may even be necessary
to have different Investment Strategies for
different members.
The Ward Financial Group can provide your fund with
an Investment Strategy that is tailored to both the
Risk Profile of the members, and the existing
Investments of the Fund. We can also review and
amend existing Investment Strategies, to ensure that
your present mix of investments is in compliance
with BOTH your Trust Deed and Investment Strategy.
