Investment Bonds
Centuria Flexible Bonds*
Centuria Flexible Bonds have many features that make them one of the most flexible investment products in Australia. They are designed to encourage medium to long-term investment and wealth creation for any purpose. Centuria Flexible Bonds offer investors a choice of 6 investment options, each with a different objective, investment strategy and risk profile.
With our Centuria Flexible Bonds you have the flexibility to switch between any of the 6 Bonds without affecting the taxation status of your investment. This is a very important feature of our bonds, especially in volatile and turbulent times, you can manage your investment by switching to the Bond that best suits your current risk tolerance, investment objectives and economic outlook without triggering any taxation consequences for your investment.
You may select a low risk Capital Guaranteed Bond or a Bond that has a higher risk which may provide exposure to potentially higher returns. You may also select or switch into any of the Centuria Flexible Bonds based on the asset classes to which the Bond is exposed. Each of the Centuria Flexible Bonds has a different risk profile, depending on the investment strategy and assets that they hold. The graph below provides an illustrative example of the risk profile of each Bond.
What is a Centuria Flexible Bond?
When you invest in a Centuria Flexible Bond you are purchasing an investment bond, which is a type of life insurance policy operated under a friendly society benefit fund structure. Unlike traditional life risk insurance products which provide financial protection, the Centuira Flexible Bonds’ focus is investment and wealth creation.
Investors in a Centuria Flexible Bond are required to select a Life Insured(s) who is named on the Bond. In the event of the death of the Life Insured, the Bond’s investment proceeds are paid out to the Bond Owner or their estate or to any nominated beneficiaries.
A Centuria Flexible Bond does not distribute regular income to investors. Instead, growth is allocated to the investor’s Bond account periodically (either each year as bonuses or daily if the Bond’s value is expressed as a unit price), and the growth is effectively re-invested to achieve a compounding effect. This means that the investor is not personally taxed on the accruing growth, which is instead taxed in the hands of Centuria Life Limited. A withdrawal (or part-withdrawal) from a Bond can be made at any time, and the growth component of a withdrawn amount can be either personally tax-free or assessable and tax-rebatable as explained further in this PDS.
Centuria Flexible Bonds have many features that make them one of the most flexible investment products in Australia and are designed to encourage medium to long-term investment and wealth creation for any purpose.
Unless otherwise stated, the information in this section is current as at 1 March 2011. Performance data and the latest available asset allocation and Bond size information is available on our website or by calling our Investor Services Team on 1300 50 50 50.
*Please note we have changed the name of each of our fomer Over Fifty Flexible Investment Bonds to Centuria Flexible Bonds. A full list of the bond’s new name and previous name can be found by following this link.