Investment Bonds Insights July 2016

27 July 2016

Welcome to our July 2016 edition of Investment Insights

With the Turnbull government now in place, we are likely to see the end of unlimited tax-effective super balances.

It now seems clear that there is going to be some change to superannuation and investors should take the opportunity to review their tax-effective investment options.

Investment bonds are one of the most tax-effective investment solutions for investors looking for flexibility and simplicity. They are worth considering when presenting alternative options for tax-effective investing to your clients. 

For those looking to supplement their superannuation, there’s no limit to the amount that can be invested in an investment bond. This means that for investors likely to hit the proposed $500k lifetime non-concessional cap, an investment bond may be a suitable alternative structure. For more details about the proposed super changes, read this article recently published in The West Australian. 

There are many reasons to consider using investment bonds to help your clients achieve their financial objectives. See our top seven here.

Over the last 12 months Centuria Investment portfolios continue to perform well in their categories outperforming their peer groups over 1,3 and 5 years.

The table below summarises the returns for all our linked portfolios. Performance figures are correct to 30 June 2016.

 

Bond Net Performance*
1 year  2 years 3 years 5 years
Centuria Growth Bond Fund 6.38% 6.61% 8.02% 6.74%
Centuria Balanced Fund 4.51% 4.88% 6.54% 6.50%
Centuria High Growth Fund 3.52% 6.24% 8.18% 7.72%
Centuria Australian Shares Fund 6.64% 6.71% 9.438% 8.14%

* Performance is measured after taxes and fees within this tax paid bond. For periods of 1 year or longer, the movement is expressed as an annual rate of return. For periods less than 1 year the return is expressed as a percentage for that corresponding period. Past performance is not a reliable indicator of future performance.

For more information about Centuria’s Investment Bonds please call 1300 50 50 50 or email enquiries@centuria.com.au.