Generation Life Investment Bond Investors Mutual Australian Shares

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101105-2022-04-29-02:26.pdf
FUND MANAGER Investors Mutual
ASX Code
INVESTMENT STYLE The Option will invest in a diversified portfolio of quality ASX listed Australian industrial and resources shares.
INVESTMENT PROFILE The Option seeks to provide a return (after investment fees and expenses and before taxes) which exceeds the Benchmark over rolling four-year periods.
BENCHMARK S&P/ASX 300 Accumulation Index
FUND SIZE S&P/ASX 300 Accumulation Index
FEES 1.593% p.a. of the net assets of the fund (includes GST)



Benefits of investing in Generation Life Investment Bonds

Tax-effective investing

Tax on investment earnings are paid by Generation Life at a maximum tax rate of 30%, irrespective of your personal marginal tax rate.


No need to complete annual tax returns or maintain ongoing tax records and no requirement to provide a tax file number.

Investment options

Choice of over 35 investment options. Covering a range of risk profiles and asset classes, as well as diversified investment options and low cost indexed page investment options.

Investment switching

Switch between investment options at any time (subject to a minimum amount of $50 per investment option) without incurring personal income or capital gains tax.

Making contributions

Start an investment with as little as $1,000. Contributions made in the first year of investment are uncapped, while subsequent contributions are subject to the 125% limit. Additional investments of at least $500 can be made unless using the Regular Savings Plan.

FuneralBond investors should consider limits relating to social security exemptions.

Progressive investing

For investments greater than $25,000 you can progressively invest on a monthly basis into your preferred investment options to help manage investment risk. Your investment will be progressively switched into your chosen investments over your selected period.

Regular savings plan

Flexibility to make monthly, quarterly, half-yearly or annual contributions.

The minimum regular contribution is $100 per month and your regular contribution amount can be increased each year with the automatic escalation feature.

Access to funds and Regular Withdrawal Facility

Access your investment at any time with a one off withdrawal request or by using the Regular Withdrawal Facility. Access to FuneralBond funds is only available for the payment of funeral expenses.

You can make regular withdrawals on a monthly, quarterly, half-yearly or annual basis. Regular withdrawals are not available with a FuneralBond.

Ownership flexibility

For LifeBuilder and ChildBuilder, bond owners can be:

  • Individuals or joint individuals (aged 10 years and over)
  • Companies or trusts (including deceased estates)
  • Children aged 10 to 16 years (with parent or guardian consent)

For FuneralBonds, individual or joint individual ownership is available.

Automatic portfolio rebalancing

Convenience of electing to have your investment bond's portfolio automatically re-balanced every year in line with your bond's set investment strategy.

Looking after the next generation

EstatePlanner can be used as a simple and effective way of passing on wealth to the next generation, without the potential complications of Wills and estates.

Multiple beneficiaries can be nominated to receive your bond's investment proceeds. You can also choose how benefits will be re-distributed in the event of the passing of your nominated beneficiary(ies).

You can also select a future date or event (such as your passing) where your bond will transfer to someone else nominated by you and still maintain the bond's valuable tax status.

Fee discounts

Administration fee discounts on investments established under the PDS are based on the value of your investment.

Risk level





Key Features

About Generation Life Investment Bonds

We understand that finding the right investment partner is important to you.

As the pioneer of Australia's first truly flexible investment bond, we have been at the forefront of providing innovative tax effective solutions for over 16 years.

Today we are a leading specialist provider of investment solutions - we have had over $1.4 billion invested with us to date.

Generation Life is a regulated life insurance company and our parent company is listed on the Australian Stock Exchange.

Our goal is to continue to offer market leading tax effective investment solutions that provide a flexible alternative to meet your investment needs and strategies.

What are investment bonds?

Our investment bonds are designed to provide tax effective investment solutions to your real life challenges; How do I build wealth tax effectively?', how can I give my children financial security?' and how can I pass on my wealth to loved ones without burdening them with additional tax?'

The 10 year advantage of investment bonds

Investment bonds are tax paid investments, meaning that when earnings are received we pay tax at a rate of up to 30%. If your marginal tax rate is higher than 30%, this makes investment bonds a great tax effective long term investment.  

If you invest in the bond for at least 10 years, your growth on the entire investment, including additional contributions, will be tax paid, and withdrawals after the 10th anniversary will be free of any personal tax in your hands - subject to the rules around the 125% opportunity. Also, you will not attract any capital gains tax on withdrawal or when switching between investment options.

The 125% opportunity

Your investment bond is designed to be held for at least 10 years to be most tax effective and offers the continued flexibility to make additional contributions over the life of the investment bond.

While there is no limit on how much you can contribute in your first year, each year following, you can continue to add up to 125% of the previous year's contributions, without extending your 10 year term for tax purposes. This means, the contributions you make along the way also receive full tax benefits.

It's your money so it's important to know you can access it at any time.

However, it's worth remembering that if you do withdraw part or all of your investment before the 10 years is up, some of the earnings may be taxable, depending on when the withdrawal is made (although you will get a tax offset back).

See the PDS for more information.


How we invest your money

The fund will invest in a diversified portfolio of quality ASX listed Australian industrial and resources shares, where these shares are identified by the manager as being undervalued.

Investment guidelines

  • Australian shares: 90-100%
  • Cash: 0-10%

About the investment manager

Investors Mutual Ltd (IML) is a specialist Australian equity manager based in Sydney. IML has a conservative investment style with a long-term focus and aims to deliver consistent returns for clients. IML achieves this through the disciplined application of a fundamental and value-based approach to investing. IML was established in 1998 and has approximately $9.0 billion in funds under management as at 30 December 2018.