10 February 2016

Lonsec gives Centuria investment bonds the seal of approval

Sydney, 10 February 2016: Ratings house Lonsec Research has rated four of Centuria Life Limited’s investment bonds ‘Investment Grade’. Based on rigorous analysis, this rating means that Lonsec has conviction the financial product can generate risk-adjusted returns in line with relevant objectives. The rating applies to the Australian Shares Bond, Balanced Bond, Growth Bond and High Growth Bond.

Neil Rogan, Centuria’s General Manager of investment bonds, said that an investment grade rating from Lonsec is a vote of confidence both in the bond structure itself and, more particularly, Centuria’s ability to generate investment returns within it.

“Investment bonds have been around for some time, but we are finding that they are more and more on advisers’ radar due to their tax-effective structure, as well as the flexible investment choices in their underlying portfolios, which can be adjusted to suit a range of investor needs.

This is especially important because it means investment and portfolio mix can be adjusted in line with market needs.

“They are ideally suited to saving for major life events, such as education costs or a mortgage, but can also be very effective as a tax-effective supplement to superannuation, and as a clever portfolio structuring tool in the aged-care space.“The positive Lonsec rating delivers the additional confidence advisers and their clients want when they make these longer term investment decisions and spells another good reason to take a closer look Centuria’s range,” he said.

Mr Rogan went on to explain that Centuria investment bonds have a number of portfolios designed to meet different investor needs.“We offer high growth portfolios which are more heavily weighted to assets such as equities and property, as well as balanced and defensive portfolios which include greater allocations to cash and fixed interest, depending of their objectives,” he explained.Lonsec described Centuria’s investment bonds as “retail-centric” and “designed to be flexible, liquid and long-term focused”, an appealing combination.

“With ongoing regulatory uncertainty around superannuation, Investment Bonds are well placed as tax effective savings vehicles for accumulation of wealth and income outside of superannuation” Mr Rogan added.


Disclaimer: The Lonsec Rating (assigned as follows: APIROVS0012AU – November 2015; APIROVS0006AU – November 2015; APIROVS0011AU – November 2015; APIROVS0010AU – November 2015) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Australian Shares Bond product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings