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and entering Centuria New Zealand.
With proposed changes to superannuation announced in the 2016 Federal Budget, many investors are reviewing their retirement investment options.
Company Structures and Investment Bonds are two investment structures financial advisers are considering as a means of supplementing their client’s superannuation in light of the proposed changes.
Let’s take a look at them side by side.
Company structures may suit high net wealth clients who are happy to set up a private company to hold investments. But this may only be a tax deferral mechanism, as eventually funds may need to be paid out of the company and personal tax be payable at the investor’s marginal tax rate, less any franking credits and capital gains tax discounts.
Company structures also have other limitations:
Investment Bonds should be considered as another long-term strategy given that personal tax obligations no longer apply after 10 years.
Read about the advantages of investment bonds here. Alternatively, contact our business development team for more information.
Performance figures are correct to 31 July 2016
Bond | Net Performance* | ||||||
1 month | 3 months | 6 months | 1 year | 2 years | 3 years | 5 years | |
Centuria Growth Bond Fund | 3.60% | 4.58% | 3.87% | 7.92% | 8.05% | 8.47% | 7.78% |
Centuria Balanced Fund | 2.61% | 4.25% | 2.51% | 5.17% | 5.74% | 6.50% | 7.33% |
Centuria High Growth Fund | 2.93% | 4.69% | 1.27% | 3.99% | 7.49% | 7.80% | 8.91% |
Centuria Australian Shares Fund | 5.56% | 7.01% | 5.52% | 9.77% | 8.38% | 9.82% | 9.86% |
Centuria Implemented Portfolios Dynamic Asset Allocation Bond | 1.99% | 2.60% | 5.40% | -0.12% | |||
Centuria Cash Plus Fund | 2.02% | 3.49% | 0.92% |
For more information about Centuria’s Investment Bonds please call 1300 50 50 50 or email enquiries@centuria.com.au.
We look forward to supporting you and your business throughout 2016.
*Important notice: Performance figures are shown on an after fees and after tax basis and are based on the movement in unit prices over the period. The table is accurate as at 29 February 2016. Past performance is not a reliable indicator of future performance.