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Centuria LifeGoals Vanguard Australian Fixed Interest Index Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101268-2024-07-17-13:15.pdf
FUND MANAGER Vanguard Investments Australia
ASX Code
APIR CNT0032AU
ASSET CLASS INVESTMENT BONDS
INVESTMENT STYLE

The Fund invests in high-quality, income-generating securities issued by the Commonwealth Government of Australia, Australian State Government authorities and treasury corporations, as well as investment-grade corporate issuers.

INVESTMENT PROFILE

The Vanguard Australian Fixed Interest Index Fund seeks to track the return of the Bloomberg AusBond Composite 0+ Yr Index before taking into account fees, expenses and tax.

CURRENCY MANAGEMENT Active management
INCEPTION DATE 20-02-2019
BENCHMARK Bloomberg AusBond Composite 0+ Yr Index
FUND SIZE Bloomberg AusBond Composite 0+ Yr Index
DISTRIBUTION FREQUENCY N/A
NO. OF HOLDINGS 500+
FEES 0.43% p.a.
STRUCTURE

Benefits

Benefits

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 3 - Low to Medium
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

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 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, bypassing 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 16 for more details.


 There is a 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 this PDS.

Mandate

How we invest your money

The Fund invests in high-quality, income- generating securities issued by the Commonwealth Government of Australia, Australian State Government authorities and treasury corporations, as well as investment-grade corporate issuers. While being low cost, the Fund also provides some protection against capital volatility. The investments in the Fund are predominantly rated BBB- or higher by Standard & Poor's ratings agency or equivalent.

Asset allocation

  • Cash and fixed interest: 100%