Investment Strategy

Superannuation laws provide that the trustee of a SMSF must formulate and give effect to an investment strategy for the fund. An appropriate investment strategy should reflect the investment objectives of the fund and detail the investment methods the trustee will adopt in achieving those objectives. When formulating an investment strategy, the trustee may seek written professional advice however overall responsibility remains with the trustee.

The investment strategy must have regard to the whole of the circumstances surrounding the Fund including, but not limited to:

1. the risk involved in making, holding and realising, and the likely return from the Fund's or member's investments having regard to the investment objectives of the Fund and its memberse and the trustee's expected cash flow requirements;
2. the composition of the Fund's investments as a whole including the extent to which the investments are diverse or involve the Fund being exposed to risks from inadequate diversification;
3. the liquidity of the Fund's investments having regard to its expected cash flow requirements; and
4. the ability of the Fund to discharge its existing and future liabilities.

All investment decisions must be recorded in writing and the trustee must ensure that all investment decisions are made in accordance with the investment strategy.