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A flexible tax-effective investment
The Investment Growth Bond (the Bond) is an insurance bond that provides you with a range of investment options, in a simple tax-effective investment. You can also take advantage of estate planning features such as the ability to nominate beneficiaries or use the Bond as a savings vehicle for a child by setting up a child advancement policy.
The Bond is simple because investment earnings do not have to be declared in your tax return unless you make a withdrawal within the first 10 years. You can switch without personal tax consequences between a range of nine investment options, tailored to suit a variety of investment objectives.
Who is it suitable for?
From young children to grandparents, high income earners to pensioners, the Bond suits a variety of investors' needs.
| Investor need |
Main benefits for you |
| Want certainty in estate planning and distributing your wealth? |
- Ability to nominate one or more beneficiaries
- Beneficiaries receive the proceeds tax free
- The Death Benefit Guarantee (where applicable) can provide certainty around the minimum amount that your beneficiaries will receive
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| Looking for a simple, tax-effective, long-term investment with little or no annual tax reporting and paperwork? |
- Earnings are taxed at 30%
- No annual tax reporting unless you make a withdrawal
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| Looking for an investment with growth potential but some capital protection? |
- Four of the investment options available have different guarantees included
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| Seeking a long-term investment for your children or grandchildren? |
- Able to set up a Child Advancement Policy and within limits nominate when ownership transfers to a child
- A range of investment options to choose from
- You are able to access money at any time
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| Restricted by super rules? |
- No work test applies for contributions
- No contribution caps apply
- No restrictions on the number of policies you are able to establish
- Able to access money at any time
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| In a higher tax bracket and looking for an investment that can lower your tax liability? |
- Earnings are taxed at 30%
- 125% rule, this means that every year you can contribute 125% of the previous year’s contribution
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| Want a tax-effective income stream in retirement? |
- A 30% tax offset applies on the taxable portion of any money you withdraw
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| Exploring smart investment alternatives to suit your business needs? |
- Funds available when you need them
- Little or no annual paperwork
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Investment returns
Returns will vary depending on a number of factors, including the investment options in which you invest and the length of the time you're invested in the Bond. To enable you to monitor the progress of your investment, you will receive a statement every year. You can also monitor the performance of each investment option by viewing the performance report for the Investment Growth Bond.
Investment choices
The Bond offers the potential for competitive after-tax returns through a choice of nine investment options:
- Funds available when you need them
- Little or no annual paperwork
You can tailor your own diversified investment portfolio by investing in a number of single-sector investment options.
Guarantees are provided by us for four of the investment options.
| NC - Cash |
What is guaranteed?
The unit price will never fall.
This means any rise in the unit price since the units were purchased is also guaranteed. |
| NC – Global Fixed Interest |
What is guaranteed?
If you withdraw or switch units out of this investment option after they’ve been held by you for at least two years, the unit price used to calculate the value of your withdrawal or switch will be at least equal to the price at the time you were allocated those units or switched into this option. |
| NC - Conservative |
What is guaranteed?
If you withdraw or switch units out of this investment option after they’ve been held by you for at least three years, the unit price used to calculate the value of your withdrawal or switch will be at least equal to the price at the time you were allocated those units or switched into this option. |
| NC - Diversified |
What is guaranteed?
If you withdraw or switch units out of this investment option after they’ve been held by you for at least three years, the unit price used to calculate the value of your withdrawal or switch will be at least equal to the price at the time you were allocated those units or switched into this option. |
Except to the extent that has just been stated:
- your investment with us is not guaranteed
- the value of your investment can rise and fall on a day-to-day basis.
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Access to a range of investment managers
The current investment managers managing the investments within the Bond are shown below. We reserve the right to change the investment managers at any time.
| Asset Class |
Investment Manager(s) |
| Cash |
Colonial First State Global Asset Management |
| Fixed Interest |
Colonial First State Global Asset Management
Monegy, Inc. |
| Global Listed Property* |
CBRE Clarion Securities
Colonial First State Global Asset Management
Resolution Capital Limited
State Street Global Advisors Australia Limited |
| Alternatives |
Colonial First State Global Asset Management |
| Australian Shares |
Colonial First State Global Asset Management |
| International Shares |
Aberdeen Asset Management Limited
Colonial First State Global Asset Management
State Street Global Advisors Australia Limited |
*For the CommInsure multi-sector investment options with a Global Listed Property exposure, the managers are Colonial First State Global Asset Management and State Street Global Advisors Limited.
How to invest
To apply for an Investment Growth Bond, you’ll need:
- A minimum investment of $1,000
- To receive the Product Disclosure Statement (PDS) and complete the Application form
- To be at least 10 years of age or older
Find out more
- Call us on 1800 624 100 between 8.30am and 6pm Sydney time Monday to Friday
- Download the PDS
- Download the latest monthly performance report for the Investment Growth Bond
- Speak with your financial planner
- If you do not have a financial planner but you would like to speak to one, please either:
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