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Annual Investment Strategy - SMSF

Discussion in 'Superannuation, SMSF & Personal Insurance' started by jp777, 28th Jun, 2013.

  1. jp777

    jp777 Member

    Joined:
    24th Jun, 2013
    Posts:
    14
    Location:
    South Melbourne
    Received a letter from my accountant - "Annual Investment Strategy must be reviewed by Trustees by 30 June 2013."

    Is this something I can leave until I lodge my next SMSF tax return and pre-date or is it more urgent than that?
     
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  2. Andrew Newman

    Andrew Newman Well-Known Member

    Joined:
    5th Nov, 2008
    Posts:
    176
    Location:
    Melbourne
    Hi jp777

    The following information may be of interest and is from the SuperGuide.com.au website.

    Kind Regards


    New rules for SMSFs

    The new rules, taking effect 1 July 2012 (from the 2012/2013 financial year), require self-managed super fund trustees to:

    Review investment strategy regularly. You must review your super fund’s investment strategy regularly (that is, of course, if you don’t already review your strategy regularly). You need to review your SMSF’s strategy on a regular basis to ensure that it still meets the needs and objectives of your fund members. According to the ATO, proof of a review may involve documenting any review decisions in the minutes of trustee meetings held during the year.

    Consider the merits of life insurance. You must consider the merits of life insurance for each SMSF member when considering your fund’s investment strategy. This requirement does not mean that you must take out life insurance within your SMSF.

    Value your SMSF assets at market value. You must value the SMSF’s assets at market value when preparing financial accounts and statements. The ATO has produced valuation guidelines for SMSF trustees and their advisers.

    Keep personal assets from SMSF assets or get fined. An unusual but important further change to the super rules is the requirement to keep your personal assets separate from your SMSF assets. This change is unusual because you have always been required to keep your assets separate from your SMSF’s assets, but now this requirement is an operating standard. This change to the legal status of this requirement means that you can now be hit with a fine of up to $11,000 if you break this rule.
     
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  3. jp777

    jp777 Member

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    24th Jun, 2013
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    Location:
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    Thanks Andrew, doesn't sound like I need to rush out and do anything in a hurry I guess.
     
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  4. Jimmy007

    Jimmy007 Member

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    28th Aug, 2013
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    Location:
    Brisbane
    If it's not going to be a massive deal. May as well sort it out. I know it's only going to get more regulated with the amount of smsf funds sitting in cash currently going backwards (against inflation).
     
    Last edited by a moderator: 27th Sep, 2016
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  5. ethereal

    ethereal Member

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    20th Jun, 2012
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    Location:
    Adelaide, SA
    We like our long-term SMSF accountant for his honesty and help but now he's hamstrung by the recent restriction to give advice. He is difficult to understand too. He has rejected our latest Annual Strategy Statement and thus our 2018 return is held up. Apparently, Auditors have a degree of responsibility now & he sent us this link ( Caveat auditor and feeble SMSF investment strategies - Cuffelinks ). He is going on about an ETF in our portfolio which he says is regarded as somehow different to a long-held LIC, and he has no issue with that, but I must say something about the ETF in the statement.

    We are in pension mode and in our 70's.

    If possible I would like a copy of someone's statement that is up to date and would be regarded as acceptable, and clarification on our accountants' concerns.
     
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  6. ethereal

    ethereal Member

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    20th Jun, 2012
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    Location:
    Adelaide, SA
    I would still like to see some other's strategies but I believe I have discovered our accountant's concern with ETFs i.e. they have a risk factor which does not apply to LICs. ETFs may include the dreaded derivatives. However the ASX has special requirements one of which is a limit of 10% derviatives. This risk should be acknowledged in the Strategy statement.
     
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  7. twisted strategies

    twisted strategies Well-Known Member

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    3rd Nov, 2013
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    Location:
    QLD
    ETFs such as BEAR , BBOZ and BBOZ are heavily weighted in derivatives and some ETPS ( such as OOO ) also
    .
    BUT some LICs use options and CFDs ( and short-selling strategies ) as well

    it is a real minefield trying to avoid excessive risk

    the best i can think of is to diversify strategies ( some shares , some ETFs , some LICs and some REITs ( and some interest-bearing securities when the risk v. reward factors are favourable )

    to avoid the restraints involved in a SMSF ( and formal super fund ) i chose to go it 'freestyle ' and fully control my investment portfolio , but that won't suit many members
     
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