Detailed below is the Investment Process you should follow when making Investments for your 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 Fund complies with all Super Laws.
Review Investments Allowed
Clients of ESUPERFUND can only invest in Investments Allowed under the ESUPERFUND Platform. Accordingly prior to making an Investment for your SMSF you must ensure that the Investment selected is allowed under the ESUPERFUND Platform. For a full list of Investments Allowed under the ESUPERFUND Platform please click here.
Consider Investment Strategy
Prior to making any Investment you must ensure that the Investment complies with your Fund's Investment Strategy. If you adopt the Standard Investment Strategy provided by ESUPERFUND for your SMSF, this will allow to invest in all Investments listed as Investments Allowed under the ESUPERFUND Platform. For more details on the importance of the Investment Strategy click here.
Make Investments from the Transaction Bank Account
All Investments made by your SMSF must be made directly from the Transaction Bank Account. For example if you are investing in say a Term Deposit or Online Savings Account the investment will need to be made from the proceeds in the Transaction Bank Account. Accordingly prior to making an investment the monies must first be made to the Transaction Bank Account and the Investment in turn made from that account. This ensures that ESUPERFUND can track all investments made by your SMSF and importantly ensure we can streamline the annual compliance process ensuring our annual fees are kept well under market.
As a Trustee you must ensure all investment decisions are made in accordance with the documented Investment Strategy of the SMSF. We recommend that investment decisions are documented detailing how they conform to the 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 share purchased. This is unnecessary. 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. A Standard Investment Minute can be found here.
Document Annual Investment Review
In addition we recommend a minute 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. For example you may be moving from an aggressive investment theme that invests predominantly in speculative and blue chip shares as you were working and required capital growth to a more capital stable income generating investment theme as you were approaching retirement.