What is this product about?
Also known as an insurance bond, investment bonds combine many of the features of a managed fund and a life insurance policy, with the added benefit of the investment bond provider paying 30 per cent tax on any earnings in the bond, rather than an individual paying tax on earnings at their marginal tax rate.
Key benefits of our bond
Tax-effective investing
- If held for more than 10 years and complying with 125% rule, it is considered a “tax-paid” investment, as tax is paid by us at the company tax rate of 30%. Plus no annual tax reporting unless you make a withdrawal.
- If you withdraw in the first 10 years a 30% tax offset applies.
- No personal capital gains tax on investment switches, withdrawals and change of beneficial ownership.
Estate planning
- Nominate multiple beneficiaries (stipulating percentage of benefit) with no restrictions on who is nominated and beneficiaries receive the proceeds tax-paid.
Savings options for children
- Children as young as 10 can invest with parental or guardian consent.
- Setup a Child Advancement Policy and within limits nominate when ownership transfers to the child, without any capital gains tax implications.
Rebate Offer
- Clients with an initial investment amount of $100,000 or greater will receive a one-off rebate as additional units in your chosen investment option
Resolution Life Australia has prepared a Target Market Determination which describes the class of consumers that comprise the target market for this product. The Target Market Determination can be sourced at Target Market Determinations - Resolution Life.
Our difference
Safety and security are important considerations for many people, especially when the market is volatile. Which is why the Resolution Life Investment Growth Bond offers two key features that help protect capital from market risk.
Death benefit guarantee
The Death Benefit guarantee provides certainty around the minimum amount that will be paid on the death of the last surviving Life Insured, which can be particularly important during times of market uncertainty*.
Investment option guarantee
Offered on four of our nine investment options which are designed to provide certainty around the minimum value of the investment. The nature of the guarantee differs across the NC-Cash, NC-Global Fixed Income, NC-Diversified and NC-Conservative investment options*.
*Terms and conditions apply. Refer to the PDS for more details.
Our investment advantage
This flyer provides an insight into our investment approach and the strategies we use to reduce risk and increase risk-adjusted returns.
Investment option performance
Download and keep track of the quarterly performance for each of our nine investment options.
Cash
To provide returns above a published benchmark of Australian bank bills before fees and taxes. The strategy invests predominately in short term money market securities in order to provide both income and the highest level of security.
Diversified Fixed Interest
To provide returns above a published benchmark of Australian and Global sovereign bonds, credit and other fixed interest securities before fees and taxes. The strategy invests in a diversified portfolio of short and long-term Australian and international fixed income securities. The strategy is typically hedged to Australian dollars.
Listed Real Assets
To invest in a portfolio of global listed property securities in order to seek total return through a combination of current income and long-term capital appreciation. The portfolio aims to hedge currency risk. This option may have a high level of short to medium-term volatility.
International Share
To provide returns above a published benchmark of International shares (excluding Australia) over the medium to long term. The strategy aims to achieve its objective by investing in a diversified portfolio of shares, listed or expected to be listed predominantly in developed markets, but may also have an allocation to emerging markets. The strategy is unhedged to Australian dollars.
Balanced
To achieve a return of Consumer Price Index (CPI) plus 2.5% p.a. over the medium to long term before fees and taxes by investing in a diversified mix of growth (e.g. shares, property and infrastructure) and defensive assets (e.g. cash and fixed interest).
Investment information and performance
Returns will vary depending on a number of factors, including the investment options in which your client invests and the length of the time they're invested in the Bond.
Technical strategies
Resolution Life has produced a range of Strategy Papers that illustrate how investment bonds can form part of a number of strategies for a clients’ portfolio.
Saving for children and grandchildren
When investing for a child or grandchild the investment bond can be structured in four key ways.
Estate Planning and wealth distribution
With a Bond, clients can nominate more than one beneficiary and stipulate the percentage of the benefit that each beneficiary will receive.
How to invest
STEP 1:
Read this PDS
We recommend that you read this PDS carefully and contact your dedicated Retirement BDM if you have any questions.
STEP 2:
Complete application form
Please send your Application Form, cheque or direct deposit receipt (if applicable), and certified ID, to:
Resolution Life
Investment Growth Bond
GPO Box 3306
Sydney NSW 2001
Adviser use only
Scan and email forms to:
au.newbusinessigb@resolutionlife.com.au
STEP 3:
Application acceptance
The effective date of your clients’ Investment Growth Bond is the date all application requirements, including their investment are received by us.
For more information
Contact your dedicated Retirement BDM.
Investment Growth Bond forms and documents
Docusign forms
- Investment Growth Bond application form (adviser)
- Investment Growth Bond application form (direct customer)
- Identification Form – Australian Companies
- Identification Form – Australian regulated trusts and trustees
- Identification Form – Australian unregulated trusts and trustees
- Identification Form – Individuals and Sole Traders
- Confirmation of tax information – Individuals
- Confirmation of tax information – Entities
Awards
We're proud winners of the Association of Financial Advisers (AFA) Investment Bond Award 15 years running (2008 through to 2022)*. We're also proud winners of the 2020, 2021 and 2022 AFA Investment Bond Excellence Award.
*Plan for Life/AFA Investment Bond of the Year winner from 2008 through to 2022. Benchmarked on scores for financial, market and product strength factors.
Important information
Where the information on this website is factual information only, it does not contain any financial product advice or make any recommendations about a financial product or service being right for you. Any advice is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the product disclosure statement and policy document for the product. Any guarantee offered in the product is only provided by Resolution Life. Any Target Market Determinations for our products can be found at resolutionlife.com.au/target-market-determinations.
Resolution Life does not make any representation or warranty as to the accuracy, reliability or completeness of material on this website nor accepts any liability or responsibility for any acts or decisions based on such information.
Resolution Life can be contacted at resolutionlife.com.au/contact-us or by calling 133 731.
