Self Managed Superannuation Fund investment strategy workbook

Transcription

1 Self Managed Superannuation Fund investment strategy workbook Issue Number 2 June 2013 Prepared for Prepared by

2 Contents Page Fund s Details 3 Member Details 6 Current SMSF s Assets and Liabilities 14 Investment Objectives 15 Investment Strategy 16 Investment Strategy Summary 17 Trustee Acknowledgement 18 Superannuation legislation requires that Self-Managed Superannuation Funds (SMSFs or Fund ) have an appropriate investment strategy, which must be formulated and documented. The purpose of this SMSF Investment Strategy Workbook is to help the trustee(s) of a SMSF apply fi nancial planning techniques to develop or review the Fund s investment portfolio and ensure an appropriate investment strategy is implemented. It is designed to assist the trustee(s) in satisfying regulatory requirements of the Superannuation Industry (Supervision) Act 1993 (Cth) and Regulations (SIS). Completion of this document alone should not be viewed as constituting a valid investment strategy. The trustee(s) of the fund need to consider and decide the investment strategy of the fund. For existing Funds it may be that little or no change to the current investment strategy is required, although application by the trustee(s) of the fi nancial planning techniques referred to in this workbook, could suggest future contributions and income be directed to a particular asset class. For new Funds applying these techniques, the recommended investment strategy should only be adopted after consideration and ratifi cation by the trustee(s) of the Fund. This SMSF Investment Strategy Workbook is not designed to consider or identify the fi nancial planning needs of the underlying members of a SMSF. The separate Asset Allocation Strategy Workbook and Financial Planning Questionnaire should be completed prior to this workbook where individual member needs are to be considered. This is an important and confi dential document. The information you have provided within this document forms the basis of any advice given by your Financial Adviser. Please note, it may be necessary to ask additional questions to identify your needs, objectives and fi nancial situation. 2 SMSF Investment Strategy Workbook

3 Fund Details All clients need to complete this section. General Information Name of the Fund Contact name Phone number Facsimile number address Fund commencement date Current number of members Fund type: Employer Sponsored Personal Fund Pension If Employer Sponsored: Employer s name Phone number Facsimile number address Can this Fund pay a pension? If yes, state the type of pension (eg Complying/Account Based/TTR) Accumulation Fund Details Pension Fund Details Last Recorded Total Fund Asset Value Date of last Valuation Is the Fund a complying Fund? Is insurance cover provided for each member? (If yes, please complete insurance details on pages 7 13.) For existing Funds when was the Fund s trust deed last reviewed or amended? SMSF Investment Strategy Workbook 3

4 Trustee details Individuals/Corporate Trustee/Director 1 Name Contact phone number/ address Member of Fund? Trustee declaration completed? Trustee/Director 2 Name Contact phone number/ address Member of Fund? Trustee declaration completed? Trustee/Director 3 Name Contact phone number/ address Member of Fund? Trustee declaration completed? Trustee/Director 4 Name Contact phone number/ address Member of Fund? Trustee declaration completed? 4 SMSF Investment Strategy Workbook

5 Trustee details Corporate Name of the company Contact name Phone Facsimile number address Administrator details (if applicable) Business name Contact name Phone Facsimile number address Accountant details (if applicable) Business name Contact name Phone Facsimile number address Auditor details Business name Contact name Phone Facsimile number address SMSF Investment Strategy Workbook 5

6 Member Details. 1 All clients need to complete this section. te: This workbook is not designed to consider or identify the fi nancial planning needs of the underlying members for this SMSF. A separate Asset Allocation Strategy Workbook and Financial Planning Questionnaire should be completed prior to this workbook where individual member fi nancial planning needs are to be considered. Title (eg. Dr, Mr, Mrs, Ms, Miss) Surname Given names Phone Facsimile number address Date of birth Sex Male Female Date joined employer Annual salary $ Date joined Fund Superannuation/Pension details Type Account balance at last member statement N/A $ Accumulation Fund Details Pension Fund Details Complying Account Based TTR Date of last member statement Preserved component of this balance $ N/A Concessional $ n-concessional $ minated beneficiaries Name Relationship Allocation Binding? 6 SMSF Investment Strategy Workbook

7 Insurance details Please complete this section or tick the relevant box t applicable t disclosed Provider Type of Insurance Cover Level Annual Premium TPD Definition Own/ Any/Home Duties/General Retain Life Truma TPD Income Protection Overview of Personal Assets and Liabilities outside the Fund Assets Amount Liabilities Amount Total $ Total $ te: The personal asset position of the member may infl uence the strategy within the superannuation Fund. Relationship (if any) to other members Member 2 Member 3 Member 4 SMSF Investment Strategy Workbook 7

8 Member Details. 2 te: This workbook is not designed to consider or identify the fi nancial planning needs of the underlying members for this SMSF. A separate Asset Allocation Strategy Workbook and Financial Planning Questionnaire should be completed prior to this workbook where individual member fi nancial planning needs are to be considered. Title (eg. Dr, Mr, Mrs, Ms, Miss) Surname Given names Phone Facsimile number address Date of birth Sex Male Female Date joined employer Annual salary $ Date joined Fund Superannuation/Pension details Accumulation Fund Details Type N/A Account balance at last member statement $ Pension Fund Details Complying Account Based TTR Date of last member statement Preserved component of this balance $ N/A Concessional $ n-concessional $ minated beneficiaries Name Relationship Allocation Binding? 8 SMSF Investment Strategy Workbook

9 Insurance details Please complete this section or tick the relevant box t applicable t disclosed Provider Type of Insurance Cover Level Annual Premium TPD Definition Own/ Any/Home Duties/General Retain Life Truma TPD Income Protection Overview of Personal Assets and Liabilities outside the Fund Assets Amount Liabilities Amount Total $ Total $ te: The personal asset position of the member may infl uence the strategy within the superannuation Fund. Relationship (if any) to other members Member 1 Member 3 Member 4 SMSF Investment Strategy Workbook 9

10 Member Details. 3 te: This workbook is not designed to consider or identify the fi nancial planning needs of the underlying members for this SMSF. A separate Asset Allocation Strategy Workbook and Financial Planning Questionnaire should be completed prior to this workbook where individual member fi nancial planning needs are to be considered. Title (eg. Dr, Mr, Mrs, Ms, Miss) Surname Given names Phone Facsimile number address Date of birth Sex Male Female Date joined employer Annual salary $ Date joined Fund Superannuation/Pension details Accumulation Fund Details Type N/A Account balance at last member statement $ Pension Fund Details Complying Account Based TTR Date of last member statement Preserved component of this balance $ N/A Concessional $ n-concessional $ minated beneficiaries Name Relationship Allocation Binding? 10 SMSF Investment Strategy Workbook

11 Insurance details Please complete this section or tick the relevant box t applicable t disclosed Provider Type of Insurance Cover Level Annual Premium TPD Definition Own/ Any/Home Duties/General Retain Life Truma TPD Income Protection Overview of Personal Assets and Liabilities outside the Fund Assets Amount Liabilities Amount Total $ Total $ te: The personal asset position of the member may infl uence the strategy within the superannuation Fund. Relationship (if any) to other members Member 1 Member 2 Member 4 SMSF Investment Strategy Workbook 11

12 Member Details. 4 te: This workbook is not designed to consider or identify the fi nancial planning needs of the underlying members for this SMSF. A separate Asset Allocation Strategy Workbook and Financial Planning Questionnaire should be completed prior to this workbook where individual member fi nancial planning needs are to be considered. Title (eg. Dr, Mr, Mrs, Ms, Miss) Surname Given names Phone Facsimile number address Date of birth Sex Male Female Date joined employer Annual salary $ Date joined Fund Superannuation/Pension details Accumulation Fund Details Type N/A Account balance at last member statement $ Pension Fund Details Complying Account Based TTR Date of last member statement Preserved component of this balance $ N/A Concessional $ n-concessional $ minated beneficiaries Name Relationship Allocation Binding? 12 SMSF Investment Strategy Workbook

13 Insurance details Please complete this section or tick the relevant box t applicable t disclosed Provider Type of Insurance Cover Level Annual Premium TPD Definition Own/ Any/Home Duties/General Retain Life Truma TPD Income Protection Overview of Personal Assets and Liabilities outside the Fund Assets Amount Liabilities Amount Total $ Total $ te: The personal asset position of the member may infl uence the strategy within the superannuation Fund. Relationship (if any) to other members Member 1 Member 2 Member 3 SMSF Investment Strategy Workbook 13

14 Current SMSF Assets and Liabilities All clients need to complete this section. Current Investments as at n-geared investments Geared investments Description Direct Investments (eg property/ shares) ($) Cash Managed Funds ($) Sub Total ($) Description Gross Value ($) Debt ($) Net Value ($) LVR (%) Sub Total ($) Total ($) Fixed Interest Property Australian Shares International Shares Multi-Sector Total Cashflow Type Last year Current year Next year Investment income received $ Contributions received $ Benefi ts paid $ Benefi ts paid $ te: Further details of the Fund s assets, cash fl ow and contributions are in the attached (tick as appropriate): Investment report Superannuation statements Fund s tax return Other (specify) 14 SMSF Investment Strategy Workbook

15 Investment Objectives All clients need to complete this section. Investment Objectives are the stated, desired outcomes the portfolio of assets should achieve for your Fund. At a minimum it should state the expected range of investment returns for a given level of risk over a set timeframe. An example of a Fund s objective could be: The investment objective of the trustee is to achieve a moderate to high level of return (1% 3% above infl ation over a fi ve-year period or longer) and to diversify investments such that a capital loss over any three-year period is unlikely. Please state in the space provided below the Fund s objectives (i.e. the overall intention or purpose of investing the assets of the Fund). Important: The Fund s objective must be minuted within the Fund s administration documentation. SMSF Investment Strategy Workbook 15

16 Investment Strategy All clients need to complete this section. An Investment Strategy is the plan to follow to achieve the objectives of the Fund. It should relate to the classes of assets required to achieve these objectives, rather than individual investments. Where individual members of the Fund have different objectives, the investment strategy should refl ect those differences through an acceptable combined strategy of individual investment strategies. According to Regulation 4.09 of SIS, an appropriate investment strategy MUST be formulated and implemented by the trustee. Failure to do so may result in the Fund losing its complying status and tax concessions, while incurring monetary and punitive penalties, including possible jail terms. Regulation 4.09 states that, when formulating an investment strategy, the trustee(s) must take into consideration the following factors: The likely risks and returns of different assets classes; The need to spread risk by having an appropriate range or diversity of classes; and The Fund continuing to be in a position to pay benefi ts to members as they fall due (ie. liquidity of assets). An example of an investment strategy is: It was resolved that in pursuit of the Fund s objectives, the trustee has/trustees have determined the following investment strategy. te: That more than one investment strategy may be appropriate where different Fund members have different objectives. Asset Class Allocation Rate (%) Benchmark (%) Australian Cash Diversifi ed fi xed interest* Australian shares International shares Property Alternatives 0 0 * Includes investments such as: Australian fi xed interest, international fi xed interest, investment and non-investment grade credit and high yield debt. ** Includes but it is not limited to investments such as: hedge Funds, Fund of Fund hedge Funds, private equity, direct infrastructure, derivative based Funds, currency and commodity Funds.What is the Fund s current investment strategy? 16 SMSF Investment Strategy Workbook

17 Investment Strategy Summary Step 1. You should now complete the Asset Allocation Strategy Workbook for each member of the Fund to determine their preferred Risk Profi le. After completion, you need to determine the appropriate asset allocation to recommend, based on whether or not the SMSF segregates the assets per member or if all the assets are pooled. Step 2. Transfer your recommended asset allocation below. Step 3. Determine the variance for each asset class. Step 4. Determine and document how the recommended investment strategy will be achieved. (See important notes below.) Step 5. Prepare an investment strategy report for trustee(s) based on step 4. te: For new Funds commenced with 100% cash, the recommended strategy can be adopted after consideration and ratifi cation by the trustee(s) of the Fund. Asset Sector Current Allocation Recommended allocation Variance in allocation Cash $ % $ % $ % Diversifi ed fi xed interest $ % $ % $ % Australian shares $ % $ % $ % International shares $ % $ % $ % Property $ % $ % $ % Alternatives $ % $ % $ % Important notes If the recommended strategy requires a restructure of existing investments to achieve the recommended asset allocation, then consideration is required as to how this will occur. For example: Is the trustee/are the trustees happy to sell existing investments to achieve the recommended asset allocation? If not, the recommended asset allocation may have to be developed over time. This can be achieved by directing future contributions and income to the asset classes under the variance allocation percentage. How will the recommended risk profile asset allocation be achieved and when? By restructuring assets? By selling current assets? By directing future contributions and income? SMSF Investment Strategy Workbook 17

18 Authorisation Trustee acknowledgement and engagement authority Subject matter At our meeting, we discussed the goals you, as Trustee(s), are seeking to achieve and the strategy for reaching these goals. As part of the process we discussed the Fund s needs, objectives and fi nancial situation and agreed on the following: Scope of advice After identifying the subject matter above we agreed to cover the following areas of advice, as relevant to the Fund s circumstances, within an appropriate advice document: Where the advice is limited, please state reasons for the limitation: The following matters will not be included as part of the advice document preparation at this time: 18 SMSF Investment Strategy Workbook

19 Trustee acknowledgement and engagement authority I/We request that you provide fi nancial advice based on the information disclosed and acknowledge that you will rely on the information contained in this document. I/We have informed you if any of the funds available for investment have been borrowed from any source related or unrelated to the advice sought (eg. home equity loan, margin loan, credit card etc.) I/We acknowledge that if I/we provided any incomplete or inaccurate information that I/we carefully consider the appropriateness of the advice according to the Fund s objectivess, before acting on any advice provided. I/We acknowledge that you will charge a plan preparation fee of $ and on completing the written advice authorise the payment of this fee by: (GST inclusive) for the written advice Debiting my bank account (where fees are paid via direct debit please complete a direct debit authority form) Banking the attached cheque (Please make cheque payable to Sterling Private Wealth) Other (Please specify):. I/We and confi rm that: I/We have received a copy of the Magnitude Financial Services Guide Part 1 Version, dated and Part 2 Version, dated at (or prior to) the fi rst interview and have read and understood it, including the section titled Privacy ment. I/We agree to Magnitude collecting, using and disclosing my/our personal information in accordance with the Privacy Policy. I/we will inform any other individual, such as members, that I/we have provided information about them and make them aware of the information provided in the Privacy Policy. Trustee/Director 1 Name Trustee/Director Signature Date Trustee/Director 2 Name Trustee/Director Signature Date Trustee/Director 3 Name Trustee/Director Signature Date Trustee/Director 4 Name Trustee/Director Signature Date SMSF Investment Strategy Workbook 19

20 Contact Sterling Private Wealth for further information on or visit Magnitude Group Pty Ltd ABN , AFSL and Australian Credit License number The investment strategy of a Self Managed Superannuation Fund is the responsibility of the trustee(s) of the Fund. This workbook is designed to help the trustee(s) formulate an appropriate investment strategy for their Fund. However, the strategies formulated are based on the information provided by the trustee(s) and the decisions of the trustee(s) (and not Magnitude). To the maximum extent permitted by law: (a) no guarantee, representation or warranty is given that any information or advice in this workbook (including, without limitation, in relation to the legal obligations of a trustee of a Self Managed Super Fund and fi nancial planning techniques) is complete, accurate, up to date or fi t for any purpose; and (b) either Magnitude or its representatives is in any way liable (including for negligence) to the reader, a trustee or any other person in respect of any reliance upon such information or advice. Legislative and economic factors relevant to superannuation change often and trustee(s) should review their Fund s investment strategy on a regular basis to ensure that the Fund s investment objectives are met. MC13725B-0413lc