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  • Does your SMSF investment strategy meet diversification requirements?

    At the end of August we’ll contact about 17,700 self-managed super fund (SMSF) trustees and their auditors where our records indicate the SMSF may be holding 90% or more of its funds in one asset or a single asset class.

    We're concerned some trustees haven't given due consideration to diversifying their fund’s investments; this can put the fund’s assets at risk.

    Lack of diversification or concentration risk, can expose the SMSF and its members to unnecessary risk if a significant investment fails.

    We’ll ask trustees to review their investment strategy and clearly document the reasons behind the investment decisions.

    We’ll also ask trustees to have their documentation ready for their SMSF’s approved auditor for their next audit to help the auditor form an opinion on the fund’s compliance with these requirements.

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      Last modified: 09 Aug 2019QC 59853