Questions & Answers - Investments Overview

A comprehensive summary of Investments Allowed under the ESUPERFUND Platform and issues to consider can be viewed here.

A summary of Investments Disallowed under the ESUPERFUND Platform can be viewed here.

Prior to Investing your Super Benefit, it is a requirement under current Super Law that an SMSF formulate and give effect to an Investment Strategy. An Investment Strategy is a plan for making, holding and realising SMSF Investments that reflects the SMSF's Objectives (eg increasing the value of Member Benefits). In establishing an Investment Strategy the following steps should be taken into account.

Step 1: Develop Investment Objectives.
Step 2: Develop a Strategy to achieve the Investment Objectives. 
Step 3: Monitor the Objective and Strategy with a periodic Investment Review.

For more information on the Investment Strategy, please click here.

Yes. When you establish an SMSF with ESUPERFUND we will provide an example of an Investment Strategy for your SMSF. You may adopt the Standard Investment Strategy for your SMSF or modify it as you deem necessary. The Standard Investment Strategy is very flexible and in no way restrictive. It does not specify percentage Investment ranges and gives you the flexibility in designing and implementing your SMSF Investments as you deem appropriate as the SMSF Trustee.

By law, SMSF trustees must have an investment strategy which has regard to diversification. Investment decisions are a matter for SMSF trustees and it may be prudent to see your own independent financial advice.

A Single Asset may be adopted by the Fund if the asset proposed to be invested in is considered by the Trustee to satisfy the Investment Objectives and provided that the Trustees have considered the relevant Concentration Risk. By law, SMSF trustees must have an investment strategy which has regard to diversification. Investment decisions are a matter for SMSF trustees and it may prudent to seek financial advice.

Yes. The SMSF Trustees must review the Investment Strategy of the SMSF annually and at such other times as a significant event occurs which affects the SMSF. This does NOT mean that each individual Investment must be reviewed. The Investment Review relates to reviewing the overall Investment Strategy of the SMSF.

The Investment Process should be carefully reviewed and followed to ensure that you adhere to our terms and conditions and more importantly ensure your SMSF complies with all Super Laws.

Step 1: Review Investments Allowed
Step 2: Consider Investment Strategy
Step 3: Make Investments from the Transaction Bank Account
Step 4: Document Investments
Step 5: Document Annual Investment Review

For more information on the Investment Process, please click here.

All Investments made by your SMSF must be made directly from a SMSF Bank Account. To simplify the annual compliance process it is preferred that all Investments made by your SMSF are made directly from the Transaction Bank Account. This ensures that ESUPERFUND can track all Investments made by your SMSF. However this is not compulsory and Investments can be made from any of your SMSF Accounts as desired.

No. ESUPERFUND does not provide Investment advice to clients. Prior to making any investment decision clients should consider the appropriateness of the financial product having regard to their objectives, financial situation and needs. Where applicable they may wish to consult a licensed financial planner.

As a Trustee you must ensure all Investment decisions are made in accordance with the documented Investment Strategy of the SMSF. Documenting Investments does not mean that you document every Investment made by the SMSF. Typically Investment themes should be documented. For example you may be acquiring blue chip shares for capital growth and tax effective fully franked dividends. In this case, one Investment Minute should be prepared detailing the rationale for this Investment. You should not prepare a separate Minute for every blue chip shares purchased. Similarly you may invest in several Term Deposits for capital stability and to generate a consistent ongoing yield. Again, in this case one Investment Minute should be prepared detailing the rationale for this Investment. Standard Investment Minutes can be found here.

In addition a Minute can be prepared detailing the results of the Annual Investment Review of the SMSF. In many cases there will be no change to the Investment Strategy and the underlying Investments making up that strategy. In this case a Minute will typically state that there has been no material change in the Investment Strategy or the Investments of the SMSF. Alternatively if there has been a material change in the Investments of the SMSF this should be minuted as part of the Annual Investment Review.