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SMSF Investment in Managed Fund

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Just wondering if anyone has encountered how to treat an investment into HostPlus' new Self Managed Invest Fund?  It allows an SMSF to invest into HostPlus as a managed investment and you either allocate that the SMSF is in Pension phase or accumulation and it calculates the tax for it (if there is any).  The unit price reflects the earnings (after tax) and income is reinvested.  The fund would recieve quarterly statments showing investments and market movements.  According to HostPlus you can nominate a % for Accumulation and a % for Pension phase, but if the assets aren't segregated, I'm not sure how this would work.  Any suggestions?  Would the ATO allow % to be revised following actuary report or would they need to be accurate at all times throughout the year?

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Hi @72019

 

Welcome to our Community.

 

Due to the nature of the investment, our first recommendation would be to get in touch with the provider Hostplus to find out more about how this investment is structured.

 

If you are required to nominate whether the investment should be treated as being in the accumulation phase, retirement phase or both, this suggests that the assets will potentially be segregated.

 

Assets of a complying fund are segregated current pension assets if the assets are specifically identified as supporting retirement phase income streams and the income from these assets has the sole purpose of funding payment of retirement phase income streams.

 

The proportionate method (unsegregated method) is used to calculate exempt current pension income (ECPI) when a fund doesn't set aside specific assets to support retirement phase income streams.

 

You can read more about this by checking out the methods for calculating ECPI page on our website.

 

If there is no segregation of assets or the proportionate method is required, the actuary will work out the appropriate percentages based on the information provided.

 

If you require further guidance about this investment, we recommend that you submit a request for self-managed superannuation fund specific advice as per the form from our website.

 

Hope this helps.

 

Thanks,

 

ChrisR

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @72019

 

Welcome to our Community.

 

Due to the nature of the investment, our first recommendation would be to get in touch with the provider Hostplus to find out more about how this investment is structured.

 

If you are required to nominate whether the investment should be treated as being in the accumulation phase, retirement phase or both, this suggests that the assets will potentially be segregated.

 

Assets of a complying fund are segregated current pension assets if the assets are specifically identified as supporting retirement phase income streams and the income from these assets has the sole purpose of funding payment of retirement phase income streams.

 

The proportionate method (unsegregated method) is used to calculate exempt current pension income (ECPI) when a fund doesn't set aside specific assets to support retirement phase income streams.

 

You can read more about this by checking out the methods for calculating ECPI page on our website.

 

If there is no segregation of assets or the proportionate method is required, the actuary will work out the appropriate percentages based on the information provided.

 

If you require further guidance about this investment, we recommend that you submit a request for self-managed superannuation fund specific advice as per the form from our website.

 

Hope this helps.

 

Thanks,

 

ChrisR