I am about to establish a SPA3 Income portfolio within my Self Managed Super Fund. Looking for feedback regarding experiences other members may have had in this space with respect to issues with the SMSF Trust Deed, Investment Strategy etc.
My fund is administered by Super Concepts, who have a pro-forma template for the fund’s Investment Strategy which includes a standard list of asset classes held by the fund. It does not have any facility for the inclusion of non-standard assets such as leveraged ETFs, in the fund’s asset mix.
My concern is that if I do nothing the fund may become uncompliant with the SIS Act and be flagged as such by the auditors when the annual return is submitted. On the other hand, there may be no need to do anything other than include an allowance for the SPA3 Income assets under the “International Equities” category in the standard list.
I am retired, my SMSF is fully in pension phase, and I have had a SPA3 Investor portfolios (both ASX and US) running in the fund since 2020 without any issues. Any experiences or issues anyone may have had investing with SPA3 Income in an SMSF would be very welcome.
Hi Trevor,
As long as they are listed in the SIS there is no problem. I don’t specifically state “leveraged ETFs” but do have a generic statement that includes all “derivative products” such as Options, Equities Options, CFDs etc
No harm in mentioning them specifically tho.
As always this isn’t personal investment advice or SMSF advice.
Thanks Gary, that is helpful. I have done some further research and it appears I need to produce a “Derivatives Risk Statement” to be included in the SMSF documentation along with the existing Investment Strategy.