KeyInvest has announced reductions to the administration fee for its Life Events Bond. The reduction will take effect on the 5th December and will be of benefit to all investors in the product.
The new administration fee is 0.30% per annum, making the Life Events Bond one of the most price competitive products in the investment bond sector.
The new administration fee now enables investors to access an investment bond structure, including the underlying investment management fee, from as low as 0.48% per annum.
Derek Emery, General Manager of Sales and Operations noted the reduction meant that the Life Events Bond’s pricing model would now be more in line with that of platform providers across all tax structures, “While making the Life Events Bond extremely competitive amongst our peers, it makes the product comparative with other major platforms within the Superannuation and Non Super sectors.”
Mr. Emery went on to say that “advisers are challenged with the cost of service, and this change also reflects their feedback, giving advisers the opportunity to access investment bonds at a price which makes sense and enables them to open up a range of value add advice strategies.”
The investment bond sector has had a resurgence of sorts over recent years, particularly since the introduction of superannuation caps.
Mr. Emery encourages advisers to consider KeyInvest’s Life Events Bond given that for many clients, having the majority of retirement savings in superannuation and the family home, won’t necessarily meet their financial goals and objectives. “Investment bonds have a place and can provide an alternative solution to compliment superannuation savings for the right client.”
The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.
The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.