KS Audit Pty Ltd ,
P.O. Box 296, Camden NSW 2570.

Phone: +02 4655 7873
FAX: +02 4655 7874

Investment Strategy

An Investment Strategy is required for each fund and forms the basis for all trustees’ investment decisions in order to increase retirement benefits. Whilst the legislation doesn’t expressly state that the investment strategy has to be in writing, it’s difficult to establish to an auditor that you’re complying with the strategy when it’s not in a written form.

The investment strategy should consider all circumstances of the fund and be reviewed regularly by the trustees. SIS Regulations lists some specific components to consider when trustees are preparing their investment strategy:

  • Diversification by investing in a range of assets and asset classes;
  • The risk and likely return of investing;
  • The ability to pay current and future liabilities when they fall due;
  • The liquidity of the entity’s investments in relation to cash flow;
  • Whether the trustees should hold insurance cover for a member.

A suitably qualified financial adviser should be engaged to prepare the investment strategy for the fund. It is then the responsibility of the trustees to follow the strategy.

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