Self-Managed Super Funds


Investment decisions and rules

Documented investment strategy

An SMSF is required to have a written investment strategy. This sets out how investment decisions will be made and what type of investments will be considered and includes: 

  • The expected risk and return of investments
  • The SMSF’s objectives and expected cash flow liquidity requirements
  • Asset allocation guidelines including how much can be invested, as a range, in each asset class to the extent to which investments are diverse and avoid risks from insufficient diversification
  • Whether the fund can borrow
  • Any restrictions on allowed investments
  • The ability to discharge existing and prospective liabilities
  • The death and disability needs for each member.

An investment strategy may be designed for the fund as a whole, or separate investment strategies may be designed specifically for individual members. The investment strategy and how the SMSF’s investments compare to the investment strategy, should be reviewed at least every year. 

Trustees may wish to develop the strategy themselves or seek the assistance of a qualified and experienced financial adviser. 

Tip

It is not necessary to list names of any specific investment in the investment strategy, just the guidelines for how to invest, the range of the portfolio that will be invested in each asset class and the fund’s objectives.