Centuria Life (CLL) has announced it is re-pricing its investment product, Centuria LifeGoals, by halving its administration fee from 0.60% per annum to 0.30% per annum*. This will be effective from 15 February and will apply to all new and existing investors in the 28 LifeGoals investment options.

Investment bonds have grown in popularity over the past three years off the back of changes to superannuation and the favourable 30% tax treatment on earnings that investment bonds provide. CLL has made the decision to halve the administration fee based on a number of key considerations;

  • With very low interest rates investors with cash and fixed interest exposure may find themselves making low returns.
  • CLL will apply the lower fee to all Centuria LifeGoals investment options regardless of their fund balance,e. no tiered fee structure. With the average balance of investors being around the $50,000 mark, CLL will not disadvantage these investors with higher fees.
  • The lower fee will apply to new as well as existing investors in Centuria LifeGoals investment options.

Another area that deserves closer scrutiny is how fund manager rebates are treated. CLL passes all underlying fund manager rebates back to investors resulting in lower overall costs and therefore higher returns to investors.

Adviser calculator update

Given the cut in the management fee to 0.30%, the online calculator (LIFT) has been updated to reflect this change.

The adviser version of the calculator provides a direct after-tax comparison between a managed fund and an investment bond. The adviser can select any time, asset class, investor tax rate, allow for an income drawdown and print out a full analysis to use in their client’s SOA.

Access the adviser version of LIFT.

*Other fees and costs apply please see the PDS fees and costs section for a full break down of all fees.

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