KeyInvest, a member-owned mutual friendly society, has added four Dimensional funds to its Investment Bond menu, marking a strategic expansion of its offering as advisers reassess portfolio structures amid proposed superannuation tax changes.
The move is in direct response as financial advisers increasingly model complementary strategies for high-net-worth clients following the proposed Division 296 legislation, which would impose an additional 15 per cent tax on superannuation earnings attributable to balances above $3 million, lifting the effective rate to 30 per cent.
Craig Brooke, Managing Director and Chief Executive Officer of KeyInvest, said the evolving superannuation landscape is prompting a structural reassessment within advice practices.
“Advisers are reviewing complementary strategies as superannuation settings evolve. And Division 296 has triggered a genuine reassessment of how wealth is structured for clients with larger super balances, particularly where intergenerational planning, estate complexity and liquidity flexibility are priorities.
“As a result, we are seeing renewed interest in Investment Bonds as a tax-paid structure that can sit alongside superannuation.
“Our adviser partners specifically asked us to include these Dimensional World Allocation options so they could apply the Investment Bond across a broader range of client scenarios, and as a mutual, we listen.
“Following extensive due diligence with our asset consultant partner, Atchison, it was clear that Dimensional’s evidence-based philosophy aligns strongly with our values of trust, results, innovation and care.”
The new options form the first tranche of KeyInvest’s multi-stage Investment Menu Refresh, a program to broaden investment choice and strengthen portfolio construction within the bond structure.
The additional options are:
- Dimensional World Allocation 30/70 Trust (LEB 9)
- Dimensional World Allocation 50/50 Trust (LEB 10)
- Dimensional World Allocation 70/30 Trust (LEB 11)
- Dimensional World Equity Trust (LEB 12)
Under the KeyInvest Investment Bond structure, earnings are taxed internally at a maximum rate of 30 per cent, with no annual personal tax reporting required for clients.
Investors can nominate any beneficiary, including individuals, trusts, companies or charities, with proceeds tax-paid on death, regardless of policy duration.
Dimensional Fund Advisors oversees more than US$1 trillion in assets globally and applies a research-driven, evidence-based approach to portfolio construction grounded in decades of financial science. The firm commands strong support within the Australian advice community for its disciplined implementation model and long-term focus.
KeyInvest is an APRA-regulated, member-owned mutual established in 1878, supporting circa 50,000 members nationally with investment solutions designed to build and protect long-term wealth.
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About KeyInvest
KeyInvest is an APRA regulated specialist financial services provider offering investors tax effective wealth management solutions. Its humble beginnings date back to the Adelaide of 1878, when a group of thinkers came together with the single-minded vision of helping Australians to secure their future.
KeyInvest supports the unique financial needs of its customers by working with its members and their advisers to deliver tax effective wealth management solutions that aim to improve their lives and wellbeing.
