An investment strategy is a written document by the trustee of the SMSF which sets out your fund’s investment objectives and specifies the types of investments your fund can make. All SMSF’s must have a current investment strategy or risk non-compliance.
Trustees of SMSF must regularly review their investment strategy in order to remain compliant with the ATO.
The ATO suggests considering the following each year:
• diversification (investing in a range of assets and asset classes)
• the liquidity of the fund’s assets (how easily they can be converted to cash to meet fund expenses)
• the fund’s ability to pay benefits (when members retire) and other costs it incurs
• the members’ needs and circumstances (for example, their age and retirement needs).
If you haven’t updated your investment strategy in a while or would like your current investment strategy reviewed please contact firstname.lastname@example.org