Is there a clear definition of what constitutes 'trading' as against 'investing' in relation to superfunds...both SMSF and institutional. I thought I had seen (by way of substantial shareholding notices) some of the big funds on occasion move into and out of a company over a small time frame. This could be where a superfund invests in say, a small companies fund.
I am asking this question after a discussion with a prospective financial adviser who is adamant re no 'trading' in SMSF. His definition of 'trading' appears very wide though - even out to a few months. I see it as short term investing to provide a greater return to then supply a greater income for retirement. I am of the opinion that this cuts out an important strategy of growing super balance as some of the best returns are available when good companies experience volatility in their share prices.
I made mention that as long as it was in trust deed/strategy then it would be compliant. He disagreed.
I am quite confused and am looking where to find most reliable information on this matter.
