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What is an investment bond?
Key benefits of our bond
Who is this suitable for?
What does it provide?
Investment bonds, also called insurance bonds, combine the features of a managed fund and a life insurance policy, offering security and tax effective investing. One of the main tax benefits of investment bonds is that tax on earnings is paid by us at the company tax rate of 30%. Investment earnings generally don't have to be declared in your tax return, unless you make a withdrawal within the first 10 years of holding the policy. No personal tax is payable on the investment bond once you've held it for 10 years and continue to satisfy the 125% rule. If you withdraw before 10 years, you may be able to take advantage of the 30% tax offset.
You can also benefit from no personal capital gains tax on investment switches, withdrawals and change of beneficial ownership, plus you can select from a range of investment options. Investment bonds are generally suitable for families looking to save for a child's future, retirees looking for tax-effective income, investors looking for certainty in estate planning and alternatives to super.
- If held for more than 10 years and complying with 125% rule, it is considered a “tax-paid” investment, as tax paid by us at the company tax rate of 30%. Plus no annual tax reporting unless you make a withdrawal.
- If you withdraw in the first 10 years a 30% tax offset applies.
- No personal capital gains tax on investment switches, withdrawals and change of beneficial ownership.
- Select from a range of investment options investing in assets such as Australian and global shares, property, fixed income and cash.
- Receive a one-off rebate on initial investment amounts of $100,000 or greater.
- High income earners - Earnings are taxed at 30% instead of your marginal tax rate. With the 125% rule, not all contributions have to be invested for 10 years to acquire the tax-paid status.
- Saving for children and grandchildren - Setup a Child Advancement Policy and (within limits) nominate when ownership transfers to a child. Alternatively children from 10 years of age can invest with parental or guardian consent.
- Retirees - Can offer a tax-effective income stream outside of super.
- Estate planning and wealth transfer - Our guarantees help protect your capital. No restrictions on who you can nominate and beneficiaries receive the proceeds tax-paid.
Alternative to super - No work test applies to contributions and nor do any contribution or lifetime caps apply. Access your money at any time.
For further information on how a Resolution Life Investment Growth Bond can help you with any of the below please refer to our PDS.
Resolution Life has prepared a Target Market Determination which describes the class of consumers that comprise the target market for this product. The Target Market Determination can be sourced at Target Market Determinations
Death benefit guarantee
The Death Benefit guarantee provides certainty around the minimum amount that will be paid on the death of the last surviving Life Insured, which can be particularly important during times of market uncertainty*.
Investment option guarantee
Offered on four of our nine investment options which are designed to provide certainty around the minimum value of the investment. The nature of the guarantee differs across the Cash, Global Fixed Income, Diversified and Conservative investment options*.
*Terms and conditions apply. Refer to the PDS for more details.
How to invest
STEP 1 - Read this PDS
We recommend that you read this PDS carefully before investing in an Investment Growth Bond.
STEP 2 - Send us your completed application form/s
To apply for an Investment Growth Bond, you need to provide:
- a completed and signed application form
- identification and verification documents
- the investment amount via cheque, direct deposit or super rollover
The effective date of your Investment Growth Bond is the date all application requirements, including your investment, are received and accepted by us.
For more information
Contact your financial adviser, or call us on 133 731 between 9am and 5pm (AEST/AEDT), Monday to Friday, excluding public holidays.
Investment information and performance
Returns will vary depending on a number of factors, including the investment options in which your client invests and the length of the time they're invested in the investment bond.
Performance report
View this month’s performance: Performance report
Investment option performance
Download and keep track of the quarterly performance for each of our nine investment options. Past performance information is for illustrative purposes only and is not indicative of future performance.
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Cash
To provide returns above a published benchmark of Australian bank bills before fees and taxes. The strategy invests predominately in short term money market securities in order to provide both income and the highest level of security.
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Diversified Fixed Interest
To provide returns above a published benchmark of Australian and Global sovereign bonds, credit and other fixed interest securities before fees and taxes. The strategy invests in a diversified portfolio of short and long-term Australian and international fixed income securities. The strategy is typically hedged to Australian dollars.
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Listed Real Assets
To invest in a portfolio of global listed property securities in order to seek total return through a combination of current income and long-term capital appreciation. The portfolio aims to hedge currency risk. This option may have a high level of short to medium-term volatility.
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Australian share
To provide returns above a published benchmark of Australian shares over the medium to long term before fees and taxes. The strategy aims to achieve its objective by investing in securities listed, or expected to be listed, on the Australian Securities Exchange.
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International Share
To provide returns above a published benchmark of International shares (excluding Australia) over the medium to long term. The strategy aims to achieve its objective by investing in a diversified portfolio of shares, listed or expected to be listed predominantly in developed markets, but may also have an allocation to emerging markets. The strategy is unhedged to Australian dollars.
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Conservative
To achieve a return of Consumer Price Index (CPI) plus 1.5% p.a. over the medium term before fees and taxes by investing in a diversified mix of predominately defensive assets (e.g. cash and fixed interest).
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Balanced
To achieve a return of Consumer Price Index (CPI) plus 2.5% p.a. over the medium to long term before fees and taxes by investing in a diversified mix of growth (e.g. shares, property and infrastructure) and defensive assets (e.g. cash and fixed interest).
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Growth
To achieve a return of Consumer Price Index (CPI) plus 3% p.a. over the medium to long term before fees and taxes by investing in a majority of growth assets (e.g. shares, property and infrastructure) and some defensive assets (e.g. cash and fixed interest).
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High Growth
To achieve a return of Consumer Price Index (CPI) plus 3.5% p.a. over the long term before fees and taxes by investing predominantly in growth assets (e.g. shares, property and infrastructure) with some exposure to defensive assets (e.g. cash and fixed interest).
Important documents and forms
Important documents | Product Updates |
Identification and verification forms | Important forms |
Docusign forms
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Important information
Where the information on this website is factual information only, it does not contain any financial product advice or make any recommendations about a financial product or service being right for you. Any advice is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the product disclosure statement and policy document for the product. Any guarantee offered in the product is only provided by Resolution Life. Any Target Market Determinations for our products can be found at resolutionlife.com.au/target-market-determinations.
Resolution Life does not make any representation or warranty as to the accuracy, reliability or completeness of material on this website nor accepts any liability or responsibility for any acts or decisions based on such information.
Resolution Life can be contacted at resolutionlife.com.au/contact-us or by calling 133 731.
