Just preparing the minutes for my wife's & my SMSF. I've been using the eSuperfund precious metals default minute template they provide on their website. I just wanted to run past those experienced in these things a few things I'm not feeling 100% about in my wording on the minutes. Firstly the template refers to "Physical Metals". I have changed this to "Precious metals such as gold & silver bullion." I did this because I think the word "physical" would infer that I personally will be taking delivery of the metals, which is not the case with an unallocated account. Also "physical metals" would insinuate all metals, not just precious metals. Am I missing something? Also any suggestions on how to best explain or word the decision to not insure the precious metals in light of my unallocated account having it's own inbuilt insurance would be muchly appreciated? My justifications and reasons for the Gold & Silver investment mentions: The instability of most other asset classes. Gold & silver experiencing a 10 year bull market while the fundamentals are in place for this to continue for into the foreseeable future. Precious metals having minimal counter party risk. Gold & silver having a proven historic record of being a great vehicle of wealth preservation during times of economic crisis. Anyone got any suggestions for more or better reasons? Thanks for reading
why is it a set of minutes needs to be done for purchasing PM's? You don't need to explain why you chose any other form of investment. Is it even an ATO requirement to explain the reasoning behind a purchase?
You had me questioning this myself Dirtbikepilot. Everything I have read thus far had always implied that all investment decisions had to be minuted. I've cut and pasted the following from eSuperfund's website (Source: http://www.esuperfund.com.au/Libraries/WebsitePDF/3_Investment.sflb.ashx) "Document Investments As a Trustee you must ensure all investment decisions are made in accordance with the documented Investment Strategy of the Fund. We recommend that investment decisions are documented detailing how they conform to the Investment Strategy of the Fund. Documenting Investments does not mean that you document every Investment made the Fund. Typically investment themes should be documented. For example you may be acquiring blue chip shares for capital growth and tax effective fully franked dividends. In this case, one investment minute should be prepared detailing the rationale for this investment. You should not prepare a separate minute for every blue chip shares purchased. This is unnecessary. Similarly you may invest in several Term deposits for capital stability and to generate a consistent ongoing yield. Again, in this case one investment minute should be prepared detailing the rationale for this investment. Standard Investment Minutes can be found on our website at www.esuperfund.com.au. Document Annual Investment Review In addition we recommend a minute be prepared detailing the results of the Annual Investment Review of the Fund. In many cases there will be no change to the Investment Strategy and the underlying Investments making up that strategy. In this case a Minute will typically state that there has been no material change in the Investment Strategy or the Investments of the Fund. Alternatively if there has been a material change in the investments of the Fund this should be minuted as part of the Annual Investment Review. For example you may be moving from an aggressive investment theme that invests predominantly in speculative and blue chip shares as you were working and required capital growth to a more capital stable income generating investment theme as you were approaching or had retired. Single Asset Investment Strategy This then raises the next issue of whether a SMSF can invest in one asset or one asset class only. For example can a SMSF invest 100% of monies in CFDs, in Gold, in one property or one share, say BHP? The answer is Yes. But only if the investment conforms with the Funds' Investment Strategy. Most importantly, you must prepare an Investment Minute detailing the reason for the investment and how it conforms to the Fund Investment Strategy. For example many clients invest 100% of SMSF monies in Gold for capital appreciation and to maintain the purchasing power of their investments in an accelerating inflation and currency environment. Similarly some clients invest all SMSF monies in one property for capital appreciation and a solid rental yield. Both strategies are acceptable but you must prepare an Investment Minute detailing the rationale for the investments and how they conform with the SMSF Investment Strategy. Always!" So basically whatever "theme" or investment category you are about to invest in must be minuted before commencement. These minutes should include an explanation or reason behind the decision. And importantly how they comply with the SMSF "Investment Strategy".
You need to simply have a single page doc that you file that states what your strategy is.You can change it at any time.With PM's in a SMSF i personally would take physical delivery. For the reason one takes on a SMSF ( to control your assets directly) then I can't understand why anyone would buy PM's unless you had them in your hand/safe?
It seems to me that you have more than enough info and reasons for your minutes. put it in and see what your auditor does. I suspect it will be fine. It is more than i give them...
