KeyInvest Funeral Bond Growth Index Fund Option

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101806-2023-02-23-02:31.pdf
FUND MANAGER Vanguard Investments Australia
ASX Code
INVESTMENT STYLE The Fund provides low cost access to a range of sector funds, offering broad diversification across multiple asset classes.
INVESTMENT PROFILE The Fund seeks to track the weighted average return of the various indices of the underlying funds in which it invests, in proportion to the Asset Allocation, before taking into account fees, expenses and tax.
BENCHMARK Growth Composite Index
FUND SIZE Growth Composite Index
FEES 0.85% p.a.



Why invest in the KeyInvest Funeral Bond?

The Funeral Bond is a safe and effective way to provide for future funeral expenses. For the investor it can provide peace of mind knowing that their loved ones will not be left with the financial burden of having to pay for a funeral during a time of grief.

Pension benefits

Funeral bonds may offer significant pension benefits as recipients of means tested (Assets Test and Income Test) government pensions such as the age pension or Department of Veterans' Affairs (DVA) pension may qualify for higher pension payments due to the exclusion of Funeral Bonds from Centrelink's means test (see page 8 of the PDS).

Tax benefits

Investment Earnings are not required to be included in an individual's personal tax return as the Funeral Bond is a Tax Paid investment (see page 8 of the PDS).

A tax benefit, called a supplementary bonus may also be paid when a claim is made on the Funeral Bond (see page 10 of the PDS).

Professional funds management

The Funeral Bond's investments are professionally managed by qualified Investment Managers appointed by KeyInvest. Their performance is closely monitored by KeyInvest to ensure the funds are invested according to the approved investment objective and investment strategy and to maximise Investment Earnings.

Safe and secure

When invested in the Capital Guaranteed Fund, further protection is provided by KeyInvest through a capital guarantee that protects contributions (capital) in the Funeral Bond. Any accrued annual bonuses are also guaranteed.

Regulatory supervision

Investments in the Funeral Bond are pooled with the funds of other Funeral Bond investors and held separately from all other assets of KeyInvest in dedicated Benefit Funds regulated by APRA.

Prompt claim payments

Claims are usually paid within one week of KeyInvest receiving the necessary documentation.

KeyInvest membership

An investment in a Funeral Bond results in an investor becoming a Member of KeyInvest. KeyInvest is a mutual organisation, ultimately owned by and run for the benefit of Members.




Key Features

Product Description

The Funeral Bond is a tax paid investment designed to pay the investor's funeral expenses. The KeyInvest Funeral Bond is exempt from any age pension Asset and Income Tests, subject to meeting certain conditions, and may result in a higher age pension. With funerals easily costing thousands of dollars, a KeyInvest Funeral Bond can help ease the burden on loved ones by removing the worry and stress of paying for funeral expenses during their time of grief.

Astute investors realise the benefit of having a financial plan and ensuring their insurances for home, car and health are paid, however having a plan in place covering life's final expense, a funeral, is a subject easily avoided.

The KeyInvest Funeral Bond is a capital guaranteed tax paid investment, designed to help meet funeral expenses. A Funeral Bond can be started with as little as $100 and you can make additional contributions via ad hoc lump sums or a regular savings plan (min $25 p.m.).

Taxation and pension benefits

A Funeral Bond also has other benefits including potentially significant taxation and pension benefits.

Annual bonuses are not subject to personal tax. Instead the Bond provider pays tax at the corporation tax rate (currently 30%) out of the Investment earnings prior to the allocation of annual bonuses to your Bond.


How we invest your money

The Fund provides low-cost access to a range of sector funds, offering broad diversification across multiple asset classes. The Growth Index Fund is biased towards growth assets, and is designed for investors seeking long term capital growth. The Fund targets a 30% allocation to income asset classes and a 70% allocation to growth asset classes.

Asset Allocation

Investments will typically fall within the following minimum and maximum percentages for each asset class.

  • Cash: 0%-40%
  • Australian Fixed Interest: 0%-40%
  • Australian Shares: 15%-70%
  • International Fixed Interest: 0%-40%
  • Property: 0%-40%
  • Alternatives: 0-45%