MLC actively looks for opportunities to provide better 
returns, or less risk, than those generated by the 
benchmark asset allocation and to manage the Trust’s 
exposure to the risks of investing in markets.

Aims to outperform the benchmark, before fees, over 
5 year periods.

Benefits of investing in Centuria LifeGoals Investment Bonds

Tax-effective wealth building

• 30% maximum tax paid on earnings

• no tax on withdrawals made after 10 years from initial investment

• can contribute up to 125% of the previous year's total contributions without resetting the 10-year period

• if tax applies on withdrawals made within 10 years, a tax offset operates for the amount of tax already paid by Centuria Life

Peace-of-mind estate planning

• Centuria LifeGoals do not need to form part of your estate

• proceeds can be paid directly to your Nominated Beneficiaries

• no tax on death benefit payments

Investment alternative to superannuation

• able to access your investment at any time

• no limit on the initial year's contributions

• no investment balance cap

Centuria LifeGoals Child Plan

• Provide for the future financial needs of selected children or grandchildren by selecting a vesting age between 10 and 25 years of age

Risk level

High

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

MLC actively looks for opportunities to provide better returns, or less risk, than those generated by the benchmark asset allocation and to manage the Trust's exposure to the risks of investing in markets. Our investment experts do this by:

• Researching and selecting a broad range of mainstream asset classes, and including some exposure to alternative assets and strategies.

• Adjusting the allocations to the asset classes within the defined ranges shown below.

• Selecting investment managers from some of the best in Australia and overseas.

Asset allocation

• Cash: 0%

• Fixed income: 15%
• Defensive alternatives and other: 4%

Total defensive assets: 19%

• Australian shares: 32%

• Global shares: 36%

• Listed property securities: 4%
• Growth alternatives and other: 9%

Total growth assets: 81%