Generation Life Investment Bond PIMCO Wholesale Australian Bond
About this Fund
|FUND MANAGER||PIMCO Australia|
|ASSET CLASS||INVESTMENT BONDS|
|INVESTMENT STYLE||The Option invests in fixed interest securities predominantly denominated in Australian or New Zealand currencies.|
|INVESTMENT PROFILE||The Option seeks to achieve maximum total return and preserve capital through prudent investment management.|
|BENCHMARK||Bloomberg AusBond Composite 0+ Yr Index|
|FUND SIZE||Bloomberg AusBond Composite 0+ Yr Index|
|NO. OF HOLDINGS|
Benefits of investing in Generation Life Investment Bonds
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.
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.
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.
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.
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.
For LifeBuilder and ChildBuilder, bond owners can be:
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.
Administration fee discounts on investments established under the PDS are based on the value of your investment.
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
In pursuing the fund's investment objective, the manager applies a wide range of diverse strategies including Duration analysis, Credit analysis, Relative Value analysis, Sector Allocation and Rotation and individual security selection. The manager's investment strategy emphasises active decision making with a long- term focus and seeks to avoid extreme swings in Duration or maturity with a view to creating a steady stream of returns.
About the investment manager
PIMCO is a member of the PIMCO Group, one of the largest fixed interest managers in the world. PIMCO Group's history dates back to 1971 when they were established as a specialist fixed interest manager. The PIMCO Group has its head office in Newport Beach, California, USA with offices located in Hong Kong, New York, Toronto, Munich, Amsterdam, Sydney, Singapore, Tokyo, London, Milan, Rio de Janeiro and Zurich. The PIMCO Group is majority owned by Allianz SE. PIMCO's goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO's investment process emphasises well researched fundamental economic and credit analysis to identify value in market sectors and individual securities.