Superannuation Rules Update

By Peter Vickers Business Group | superannuation, Investment, financial advice and planning, lindfield superannuation fund |

At Peter Vickers Business Group we strive to give you the latest advice to ensure you get the Best Results.

SUPERANNUATION

We have already written to all our clients that have a SMSF about two recent administration changes.

New legislation called Non Arm’s Length Expenses, NALE, means that the fund has to pay for it accounting and audit services rather than the business.

Also the role of preparation of financial statements is required to be separated from the audit. We will determine for our clients if they need a new auditor and will thus arrange for this to happen. PVA has 4 registered SMSF auditors so we can also take on SMSF audits if the accounts are prepared by the trustees or another accountant.

LINDFIELD SUPER FUNDS INVESTMENT TRUST

Some clients are unwilling or frightened to make investment decisions. We thus set up this fund to solve that problem.

The client’s SMSF invests in units in this fund. The fund currently invests in shares listed on the Australian Stock Exchange. It reports to members monthly on the change in value of their units. The trust has thus performed similar to the stock
market with a high on about the 25 February and a low about the 15 March and is now back to the February level. This is a private trust and is not open to the public.

The investment strategy is to view the portfolio as a long term investment when buying shares. We ask ourselves, will the company still be around in ten years’ time? Thus we do not have to worry about short term movements in the market price and can await a return to higher levels. Exactly like the above. We then usually invest in the top 200 companies as these are large enough to have depth in management.

We like companies that pay franked dividends. BUT they must be financially sound with good management and must be making a profit with a price that gives a reasonable price/earnings multiple. We admit that we do not have a crystal ball and thus will pass up on the shares that have gone up 200% and then may fall 250%.

We like property but this requires larger amounts of funds and is even more long term than shares and a bit more illiquid taking about 3 to 4 months to get the cash in as opposed to two days for shares, with no reference to price obtained.

We provide the same general investment advice to clients if asked.

LINDFIELD SUPERANNUATION FUND, THE CONTINUING SAGA

When compulsory superannuation came into force we set up the Lindfield Superannuation Fund to assist clients to manage their obligations. This fund was for employers or for clients that did not want the responsibility of running their own Self-Managed Superannuation Fund. Over the years the regulations about running this fund changed and we then made the fund a sub fund of Grosvenor Pirie with Peter Vickers making the investment decisions.

About two years ago Grosvenor Pirie sold their fund management business to Future Super and took over the investment decision making. One of the things that they did not do was inform members, however we did.

As general advice we said members had three options; 1.Stay with Future Super, 2. Rollover to another fund or 3. Set up a SMSF fund where the investment would be in a unit trust where Peter Vickers was making the investment decisions, the Lindfield Super Investment Trust.

Members of the Lindfield Superannuation Fund received their 30 June 2020 annual statements on 24 December. They are misleadingly as they use the old logo that we designed and is modeled on the old PVA logo. Investments are now in various
Macquarie Funds.

The Rear Windows column of the Sydney Morning Herald reported that Diversa had missed two appointments to front the House Economics Committee in Canberra. Future Super was recently sold to OneVue with the annual statement coming from Responsible Investment Services Pty Ltd (this is not a joke) but with Diversa Trustees Ltd being the responsible entity and trustee. Peter Vickers remains a member in order to continue to monitor what is going on for those remaining in the fund. This is a good example of why having your own SMSF is a good idea.

Our greatest benefit to you is the advice that we can give you.

Yours sincerely

The team @ Peter Vickers Business Group

If you’d like more information on how these changes will affect you , or more broad advice on how to grow your SMSF, please contact one of our SMSF and investing experts using the button below.

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