Tax paid investing at
a max tax rate of 30% over 10 years
Choice of
investment options
Named beneficiaries
Paid tax-free
Centuria investment bonds give investors with medium- to long-term goals the capacity to make tax-effective investment decisions outside superannuation.
Are you seeking more from your investments?
Are you wanting to build wealth, save for a property, or set aside an education fund? Do you want to complement your superannuation strategy with a more flexible investment or look for an efficient way to transfer wealth?
Tax paid for you
The growth and earnings of Centuria Investment Bonds are taxed at a maximum rate of 30%, paid by Centuria from the earnings of each bond.
Tax-paid after 10 years
You pay no personal income tax on your investment during the term, and if you hold your investment for more than 10 years, you pay no tax on withdrawals.
You can make once-only, or regular contributions and benefit from the advantages of compound growth to create long-term wealth.
We do not distribute any income until you withdraw your investment. Each bond’s net investment earnings are automatically reinvested, which means you benefit from compounding returns.
No annual tax reporting
As long as your money remains invested, we will pay tax on investment earnings and there is no requirement to declare those earnings in your annual tax reporting.
Simple
Establish your investment bond. We pay the tax and report to you annually. No tax declarations, and no additional paperwork.
Growing wealth
There are no limits on contributions in the first year and you can contribute up to 125% of the previous year’s contributions after that without changing the original start date of your investment bond for tax purposes. There are no limits on withdrawals. You can make once-only or regular contributions and withdrawals whenever you like. You can use your bond to build wealth for the future, supplement your income or save for that big expense.
Transferring wealth
You can nominate beneficiaries who will receive the proceeds of the investment bond without reference to your will. This provides peace of mind knowing your intended beneficiaries will be looked after.
Fees and expenses
The table below shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Bond’s assets as a whole. You should read all the information about fees and costs because it is important to understand their impact on your investment.
| Type of fee or cost | Amount | How and when paid |
|---|---|---|
| Fees when your money moves in or out of the fund | ||
| Establishment Fee The fee to set up your initial investment | Nil | Not applicable |
| Contribution Fee The fee on each amount contributed to your investment | Nil | Not applicable |
| Withdrawal Fee This is the fee for each withdrawal you make | Nil | Not applicable |
| Termination Fee The fee when you finally close your account | Nil | Not applicable |
Management costs
The following table shows the fees and costs for managing your investment.
| Management Fee The fee for managing your investment | Australian Shares Bond Fund Balanced Bond Fund Capital Guaranteed Bond Fund Cash Plus Bond Fund Growth Bond Fund | 1.20% p.a. 1.875% p.a. 1.50% p.a. 0.90% p.a. 1.5% p.a. | Management fees are accrued on a daily basis, based on each Bond’s gross asset value, and paid monthly in arrears out of the assets of the relevant Bond. Centuria’s Management Fees are inclusive of the management fee charged by underlying investment managers and is the total fee paid. As such the actual fee received by Centuria will be reduced where a management fee is charged by an underlying investment manager, with the effect that the management fee charged does not exceed the Management Fee detailed in this PDS. Please refer to the ‘Management costs’ and ‘Example of annual fees and costs’ sections on the following pages for further details. |
| Estimated ongoing expenses | Nil | Whilst Centuria is entitled to reimbursement of expenses out of the Bond’s assets as incurred in certain circumstances, based on historical data, expense recoveries are expected to be nil. |
Disclaimer:
Centuria’s Investment Bonds offer a tax effective investment vehicle outside of superannuation. They have features that investors should consider if they wish to invest outside of superannuation. Suitability of an investment in a Centuria Investment Bond will depend on a person’s circumstances, financial objectives and needs, none of which have been taken into consideration in this advertisement. Prospective investors should obtain and read a copy of the Product Disclosure Statement (PDS) and consider the information in the PDS in light of their circumstances, objectives and needs before making a decision to invest. We recommend that prospective investors consult with their financial adviser. This document is not an offer to invest in any of Centuria’s Investment Bonds. Investment in Centuria’s Investment Bonds are subject to risk as detailed in the PDS. Centuria will receive fees in relation to an investment in its Investment Bonds. Issued by Centuria Life Limited ABN 79 087 649 054 AFSL 230867.
1. © 2018 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decisions to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).