IMPORTANT FACTS:
An alternative investment or alternative investment fund (AIF) is an investment or fund that invests in asset classes other than stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals,[1] art,[2] wine, antiques, coins, or stamps[3] and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, carbon credits,[4] venture capital, film production,[5] financial derivatives, and cryptocurrencies. Investments in real estate, forestry and shipping are also often termed “alternative” despite the ancient use of such real assets to enhance and preserve wealth.[6] In the last century, fancy color diamonds have emerged as an alternative investment class as well.[7] Alternative investments are to be contrasted with traditional investments.
Sophisticated Investor. An investor who has had a gross annual income of $250,000 or more in each of the previous two years or has net assets of at least $2.5 million, as prescribed by the Corporations Regulations 2001 (reg 6D.2.03 and reg 7.1.28)
Can an SMSF be a sophisticated investor? In general an SMSF will be considered a “retail” client, however last year ASIC clarified that when an SMSF has net assets of $2.5 million or if the value of the investment is at least $500,000 then the SMSF can be considered a “wholesale” client.