A: Thanks for the question.

I am a fan of the Platinum Investment Bond. It is a bit of a first – a partnership between a fund manager (Platinum) and a Friendly Society (Lifeplan, a subsidiary of Australian Unity) for an investment bond. These are tax paid investments, which can be particularly attractive to high rate taxpayers (as an alternative to superannuation) and as savings vehicles, particularly for kids. I am a big fan of investment bonds (also called insurance bonds) in the right circumstances.

The bond offers two investment options – Platinum’s flagship International Fund, and the Platinum Asia Fund. The latter has been a top performer, while its flagship fund has a sound long term performance record. Fees of 1.35% (plus an estimated 0.30% in transaction costs) are comparable to other leading fund managers.

A key point to remember with any investment bond is that you need to hold the investment for 10 years to derive the full tax benefit – so if your horizon is not long term, then don’t consider them.

Regards