Centuria LifeGoals Magellan Global Fund
About this Fund
|FUND MANAGER||Magellan Asset Management|
|ASSET CLASS||INVESTMENT BONDS|
To achieve attractive risk-adjusted returns over the medium to long-term while reducing the risk of permanent capital loss.
This fund aims to invest in companies that have sustainable competitive advantages that translate into returns on capital in excess of their cost of capital for a sustained period of time. The fund will endeavour to acquire these companies at a discount to its assessment of the intrinsic value of the companies. The portfolio will consist of 20-40 investments.It is not the investment manager’s intention to hedge the foreign currency exposure of the Fund arising from investments in overseas markets.
|BENCHMARK||MSCI World Net Total Return Index (AUD)|
|FUND SIZE||MSCI World Net Total Return Index (AUD)|
|NO. OF HOLDINGS||20-40|
Benefits of investing in Centuria LifeGoals Investment Bonds
Tax-effective wealth building
Peace-of-mind estate planning
Investment alternative to superannuation
Centuria LifeGoals Child Plan
|RISK LEVEL||High Estimated negative years is 4 to less than 6 over a 20 year period|
About Centuria LifeGoals Investment Bonds
Centuria LifeGoals can assist investors who want their investment, tax planning and estate planning needs covered in one simple investment solution.
Centuria LifeGoals may be attractive for investors seeking a tax-effective investment over the medium to long-term (including those who are paying tax at a marginal rate of more than 30%) and who wish to reduce their annual tax-reporting obligations. It may also be used as an alternative to, or complementary with, your other investments including superannuation.
Centuria LifeGoals are a tax-paid investment product. Tax on the annual earnings of the Investment Options is reported and paid by Centuria Life at a maximum rate of 30%, less any applicable tax offsets, such as franking credits from shares and allowable deductions. This means that Investors do not need to declare earnings from Investment Options in their personal tax returns while they remain invested. Unlike shares, term deposits and managed funds, performance returns for the Investment Options are quoted net, or after, the payment of taxes by Centuria Life and fees.
Generally, if you hold your investment for 10 years or more, you pay no additional tax on your investment withdrawals. If you withdraw prior to this, you will normally only pay tax on the difference between 30% and any higher marginal tax rate applicable to you in that financial year on your earnings. In years 9 and 10 this difference is discounted by one-third and two- thirds respectively.
Centuria LifeGoals have features similar to a managed fund investment combined with a life insurance policy. First, the Investor chooses the Investment Options from across multiple asset classes and diversified funds. Then the Investor however selects a natural person (Life Insured) upon whose death the investment will mature (that is, become payable). If no selection is made, the Investor is also the Life Insured.
An Investor (when also the Life Insured) can nominate one or more persons (Nominated Beneficiaries) to whom proceeds from the Investment Options are to be paid in the event of the death of the Life Insured. This payment would not form part of the Investor's estate and would be paid directly to the Nominated Beneficiaries, by-passing the often complicated and time- consuming probate process.
Using the Centuria LifeGoals Child Plan, Investors can also accumulate and build special-purpose endowments for nominated children and grandchildren. The proceeds from a Centuria LifeGoals Child Plan are made available to them upon reaching a predetermined age (Vesting Age), whilst the Investor retains full control and access. The nominated child who has been selected must also be the Life Insured and becomes the Centuria LifeGoals owner when they reach the Vesting Age. See page 17 for more details.
There is an attractive range of Investment Options to choose from across multiple asset classes and diversified funds. The investment menu, consisting of specialist low-cost index funds and high-quality active investment managers, has been carefully selected by Centuria Life. The selected investment managers will be reviewed on an ongoing basis to monitor whether they are meeting their investment objectives as set out in the PDS.
How we invest your money
This fund aims to find companies at attractive prices that have sustainable competitive advantages that translate into returns on capital in excess of their cost of capital for a sustained period of time. The fund will endeavour to acquire these companies at a discount to its assessment of the intrinsic value of the companies. The portfolio will consist of 20-40 investments.