Some of the high level findings were:

• SMSF assets grew 4% in the previous 12 months.
• 1 in 5 super fund members (currently in retail/industry funds) plan to set up an SMSF at some point in the future.
• The top reasons identified for members setting up their own Funds are:
  • Greater control over their investments,
  • Achieving better returns, and
  • Positive experience from friends and other trusted advisers
• The demand for SMSF advice has increased significantly in the previous 12 months. Areas that Trustees were wanting assistance with range from pension and estate planning strategies, to identifying undervalued assets and strategies for protecting assets/income against market falls.

At BISSuper these surveys help us gain greater insight into how we can better help our Trustees manage their SMSF’s. However, whilst this kind of information is valuable, the most important feedback we can get is from our clients.

Statistics courtesy of Investment Trends, Highlights from the 2019 Self Managed Super Fund Survey, 2019.

The post Highlights from the Investment Trends 2019 SMSF Survey appeared first on BISSuper Website.

If so, you may be in the sights of the ATO. Their rationale is that a single asset SMSF may be too risky, having all of your “eggs in one basket”, and therefore not sufficiently diversified!

It is not going to be news to anybody, but the ATO are wrong, quite often!

Many of our own clients SMSFs have only one major asset, plus some cash. Ordinarily, this asset will be either a commercial or residential property, but we are also seeing SMSF’s invested in cryptocurrency or coins.

In our experience, the Trustee of these “single asset” portfolios have normally thought long and hard, with our advice, over their investment options and are completely aware of the risks involved with this investment approach.

By definition, it is a “Self Managed” Fund and as long as investment risk, diversification and liquidity, have been taken into account and documented as part of the Funds Investment Policy Statement,  that is all that is required of the Trustees.

Insurance may fill the liquidity gap, Estate planning may include reversionary pensions (to ensure that the asset remains in the SMSF in the event of the death of either of the Trustees).

As always with managing your SMSF, the devil is in the detail! Committing your investment decisions to paper, via a robust and well thought out Investment Policy Statement (IPS), is a must do for any Trustee considering holding a single asset portfolio.

Written by Brian Cosgrove 27/08/19

The post IPS – Investor Policy Statements = Investment Strategies appeared first on BISSuper Website.