Investment strategyInvestment strategy

Investment strategy

30. The trustee must prepare and maintain a current investment strategy for the fund.

30.1. An appropriate investment strategy should set out the investment objectives of the fund and detail the investment methods the trustee will adopt to achieve those objectives.

30.2. The strategy must reflect the purpose and circumstances of the fund and have particular regard to (but not be limited to):

• the risk involved in making, holding and realising, and the likely return from, the fund’s investments, having regard to the fund’s objects and its expected cash flow requirements (including distribution requirements); and

• the composition of the fund’s investments as a whole, including the extent to which the investments are diverse or involve the fund being exposed to risks from inadequate diversification; and

• the liquidity of the fund’s investments, having regard to its expected cash flow requirements (including distribution requirements); and

• the ability of the fund to discharge its existing and prospective liabilities; and

• the investment requirements imposed by *State laws or *Territory laws; and

• status of the fund as a *registered charity (where applicable); and

• real or perceived material conflicts of interest in holding particular investments (including those relating to individuals involved in the decision-making of the fund); and

• the terms and other circumstances relating to any gift to the fund under a will.

PENALTY: 10 penalty units.

31. The trustee must implement the investment strategy, and must ensure that all investment decisions are made in accordance with it.

PENALTY: 15 penalty units.

32. The investment strategy (and a record of the associated decision-making processes) must be available in a written form so that the trustee, an auditor, a reviewer or the Commissioner can determine whether the fund has complied with these Guidelines and other *Australian laws.

PENALTY: 10 penalty units.