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Investment Bonds Insights June 2016

Welcome to our June 2016 edition of Investment Insights

With the Federal Election looming, proposed changes to superannuation concessional and non- concessional caps could significantly affect the plans and strategies many of your clients have in place for their retirement.

Your clients may be relying on you to present alternative options for tax-effective investing. An option worth considering is a Centuria Investment Bond.

Centuria Investment Bonds can provide options for those looking to supplement their superannuation.

With Investment Bonds:

  1. There are no limits on what can be contributed to an investment bond provided contributions in year 2 do not exceed 125% of the prior year’s contribution.
  2. Tax rates of the fund are capped at the fund rate which is currently a maximum of 30%.
  3. There is no personal tax on withdrawals after 10 years.
  4. Estate planning without potential complications of wills. Beneficiaries receive proceeds tax-free.
  5. Investment Bonds offer bankruptcy protection as proceeds are protected from creditors.

Centuria funds 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.

Bond Net Performance*
1 year  2 years 3 years 5 years
Centuria Growth Bond Fund 5.69% 7.63% 8.59% 7.11%
Centuria Balanced Fund 2.52% 4.51% 5.86% 6.42%
Centuria High Growth Fund 3.13% 6.33% 8.01% 7.79%
Centuria Australian Shares Fund 6.37% 7.04% 9.42% 8.56%

* 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.