Investment Strategy Workbook

Transcription

1 Self Managed Super Fund Investment Strategy Workbook Prepared for Securitor Financial Group Ltd ABN (Securitor) Licensed Dealer in Securities Securitor Financial Group Ltd ABN Australian Financial Services Licence Number

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3 Introduction Superannuation legislation requires that self-managed superannuation funds have an appropriate investment strategy, which must be formulated and documented. The purpose of this workbook is to apply financial planning techniques to develop or review the fund s investment portfolio and ensure an appropriate investment strategy is implemented. It is designed to assist in satisfying the Superannuation Industry (Supervision) Act 1993 (Cth) and Regulations (SIS) Regulatory requirements and enhance the suitability and investment performance of the fund s assets. Completion of this document alone should not be viewed as constituting a valid investment strategy. The outcomes generated need to be considered and ratified by the trustees of the fund. For existing funds it may be that little change to the current investment strategy is required, although application of the financial planning techniques herein could suggest future contributions and income be directed to a particular asset class. For new funds applying these techniques, the recommended investment strategy can be adopted at the outset. This workbook is not designed to consider or identify the financial planning needs of the underlying investors for this self-managed superannuation fund. The separate investor risk profile workbook and financial planning questionnaire should be completed prior to this workbook where individual investor needs are to be considered. Securitor Self Managed Super Fund Investment Strategy Workbook 1

4 Steps in developing a Fund s Investment Strategy Page Record Fund Details 3 Record Member Details 5 The Fund s Investment Objectives 9 Record and Categorise Current Investments 10 Investment Strategy 11 Trustee Acknowledgment / Disclaimer 12 Your risk profile is Cash and your score is 0, regardless of the responses given to other questions. * 2 Securitor Self Managed Super Fund Investment Strategy Workbook

5 Fund Details Name of the Fund Contact Name Phone Facsimile Trustee Details (individuals or director of corporate trustee) 1. Name Member of fund? 2. Name Member of fund? 3. Name Member of fund? 4. Name Member of fund? If Company: Name of Company Postal address Director s Names Are all the trustees members of the fund? Securitor Self Managed Super Fund Investment Strategy Workbook 3

6 Fund Details (continued) Administrator Details (if applicable) Business Name Contact Name Phone Facsimile Accountant Details (if applicable) Business Name Contact Name Phone Facsimile Auditor Details Business Name Contact Name Phone Facsimile Fund Commencement Date Fund Type (eg. Employer Sponsored, Personal Fund, Pension) If Employer Sponsored: Employer name Phone Facsimile Can this fund pay a pension? If so, state the type of pension (eg. Complying/Allocated) X X Current. of Members. Last Recorded Total Fund Asset Value:. Date of last Valuation: Is the fund a complying fund? Is insurance cover provided for each member? Please complete insurance for each member on Member Details on pages Securitor Self Managed Super Fund Investment Strategy Workbook

7 Member Details. 1 te: This workbook is not designed to consider or identify the financial planning needs of the underlying investors for this selfmanaged superannuation fund. A separate investor risk profile workbook and financial planning questionnaire should be completed prior to this workbook where individual investor needs are to be considered. Title Surname Given Names Phone: Home Business Sex Male Female Date of birth Date joined Employer Annual Salary Date joined Fund Does Member have transitional RBL? Lump sum RBL: Year Ended 30 June Amount of Insurance cover within Fund: Type: Premium: minated Beneficiaries Name Relationship Allocation Binding? Account Balance at Last Member ment Date of Last Member ment Preserved component of this balance Overview of Personal Assets and Liabilities Outside the Fund Assets Liabilities Total Total te: The personal asset position of the member may influence the strategy within the superannuation fund. Relationship (if any) to other members Securitor Self Managed Super Fund Investment Strategy Workbook 5

8 Member Details. 2 te: This workbook is not designed to consider or identify the financial planning needs of the underlying investors for this selfmanaged superannuation fund. A separate investor risk profile workbook and financial planning questionnaire should be completed prior to this workbook where individual investor needs are to be considered. Title Surname Given Names Phone: Home Business Sex Male Female Date of birth Date joined Employer Annual Salary Date joined Fund Does Member have transitional RBL? Lump sum RBL: Year Ended 30 June Amount of Insurance cover within Fund: Type: Premium: minated Beneficiaries Name Relationship Allocation Binding? Account Balance at Last Member ment Date of Last Member ment Preserved component of this balance Overview of Personal Assets and Liabilities Outside the Fund Assets Liabilities Total Total te: The personal asset position of the member may influence the strategy within the superannuation fund. Relationship (if any) to other members 6 Securitor Self Managed Super Fund Investment Strategy Workbook

9 Member Details. 3 te: This workbook is not designed to consider or identify the financial planning needs of the underlying investors for this selfmanaged superannuation fund. A separate investor risk profile workbook and financial planning questionnaire should be completed prior to this workbook where individual investor needs are to be considered. Title Surname Given Names Phone: Home Business Sex Male Female Date of birth Date joined Employer Annual Salary Date joined Fund Does Member have transitional RBL? Lump sum RBL: Year Ended 30 June Amount of Insurance cover within Fund: Type: Premium: minated Beneficiaries Name Relationship Allocation Binding? Account Balance at Last Member ment Date of Last Member ment Preserved component of this balance Overview of Personal Assets and Liabilities Outside the Fund Assets Liabilities Total Total te: The personal asset position of the member may influence the strategy within the superannuation fund. Relationship (if any) to other members Securitor Self Managed Super Fund Investment Strategy Workbook 7

10 Member Details. 4 te: This workbook is not designed to consider or identify the financial planning needs of the underlying investors for this selfmanaged superannuation fund. A separate investor risk profile workbook and financial planning questionnaire should be completed prior to this workbook where individual investor needs are to be considered. Title Surname Given Names Phone: Home Business Sex Male Female Date of birth Date joined Employer Annual Salary Date joined Fund Does Member have transitional RBL? Lump sum RBL: Year Ended 30 June Amount of Insurance cover within Fund: Type: Premium: minated Beneficiaries Name Relationship Allocation Binding? Account Balance at Last Member ment Date of Last Member ment Preserved component of this balance Overview of Personal Assets and Liabilities Outside the Fund Assets Liabilities Total Total te: The personal asset position of the member may influence the strategy within the superannuation fund. Relationship (if any) to other members 8 Securitor Self Managed Super Fund Investment Strategy Workbook

11 The Fund s Investment Objectives 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 inflation over a five - 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 objective. (Ie. 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. Securitor Self Managed Super Fund Investment Strategy Workbook 9

12 Current Investments as at Direct (eg. property/shares/etc) Managed Funds Asset Allocation of All Classes Description Current Value Current Value Cash Fixed Interest Property Australian Shares International Shares Other/Multi-Sector Total The fund s overall net rate of return (if applicable) Last Year 2 Year Average 5 Year Average 7 Year Average 10 Year Average 10 Securitor Self Managed Super Fund Investment Strategy Workbook

13 Investment Strategy 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 reflect those differences through an acceptable combined strategy or individual investment strategies. According to Regulation 4.09 of SIS, an appropriate investment strategy MUST be documented 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 goal 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 asset classes; The need to spread risk by having an appropriate range or diversity of asset classes; The fund continuing to be in a position to pay benefits 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 Trustees have determined the following investment strategy. Asset Class Allocation Range Benchmark Cash Fixed Interest Australian Shares International Shares Property te: that more than one investment strategy may be appropriate where different fund members have different objectives. What is the fund s current investment strategy? Securitor Self Managed Super Fund Investment Strategy Workbook 11

14 Investment Strategy Summary Step 1. You should now complete the Asset Allocation Strategy Workbook to determine the fund s risk profile and the appropriate recommended asset allocation. (Refer to your own current Dealer asset allocation asset recommendations for each respective risk profile) Step 2. Transfer your recommended Dealer 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 trustees based on step 4. NB For new funds commenced with 100 cash, the recommended strategy can be adopted at the outset. Asset Sector Current Recommended Allocation Variance Allocation Cash Fixed Interest Property Equities Australian Equities International Other Important tes If the recommended strategy requires a restructure of an existing fund s investments to achieve the recommended asset allocation, then consideration is required as to how this will occur. eg. Are trustees happy to sell existing investments to achieve the recommended asset allocation? If not, the recommended strategy may have to be developed over time.this can be achieved by directing future contributions and income to the asset classes under the benchmark percentage. How will the recommended strategy be achieved and when? By restructuring assets? By selling current assets? By directing future contributions and income? 12 Securitor Self Managed Super Fund Investment Strategy Workbook

15 Trustee Xx Acknowledgement I/We confirm that the details recorded in this Workbook are true and correct. x Signature of Trustee 1/Director 1 Date x Signature of Trustee 2/Director 2 Date x Signature of Trustee 3/Director 3 Date x Signature of Trustee 4/Director 4 Date Disclaimer The investment strategy of a Self Managed Superannuation Fund is the responsibility of the Trustee/s of the fund.this workbook is designed to assist 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 no guarantee is expressed or implied by Securitor Financial Group Limited ABN ("Securitor") or its authorised representatives in relation to any income, growth assets projections or performance of any assets in the strategies. Legislative and economic factors relevant to superannuation change often and Trustees should review their fund's investment strategy on a regular basis to ensure that the fund's investment objectives are met. Securitor Securitor Self Managed Super Fund Investment Strategy Workbook 13

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20 Securitor Financial Group Ltd ABN Australian Financial Services Licence Number Sydney Level George Street Sydney NSW 2000 Brisbane Level 21, Central Plaza One 345 Queen Street Brisbane QLD 4000 Adelaide Level 25, Santos House 91 King William Street Adelaide SA 5000 Melbourne Level 41, ANZ Tower 55 Collins Street Melbourne VIC 3000 Perth Level 38, Central Park 152 St George s Terrace Perth WA 6000 For further information CWFISW41105