But not about Investment Strategies

While you can be relaxed and comfortable about the Henry Tax Review, SMSF trustees should not be relaxed and comfortable about out-of-date investments strategies.

Each SMSF must have an investment strategy.  The strategy should be documented and regularly reviewed.  Also, it should be reviewed as and when a significant event occurs in respect of the fund – such as the commencement of a pension, receipt of a significant contribution, or even significant declines in market value.

Given the current market volatility, trustees should review their current investment strategies.

Review simply means review.  There could be good reasons why the current investment strategy is unchanged.  Equally, there could be good reasons to change the strategy.

Even if the review of the investment strategy results in no changes to the strategy, it will be still be prudent for the trustees to formally record that they reviewed their investment strategy, and their reasons supporting the decision to change or not change the strategy.