Demand for alternative investment strategies has increased, according to Lifeplan, in light of recent changes to superannuation which have created “distrust” amongst investors.
Although superannuation remains an important vehicle for retirement, head of Lifeplan Matt Walsh said there is an opportunity to develop alternative investment strategies within which super is not the sole savings vehicle.
For those concerned about “noise and confusion” around super, Mr Walsh said the inclusion of tax-advantaged vehicles that offer diversity and growth should be appealing as an alternative or additional strategy.
Strategies include investment bonds, Mr Walsh said, which limit the tax on earnings to 30 per cent, with no cap. Investment bonds also create opportunities for intergenerational wealth management, which Mr Walsh said has captured the attention of the adviser market.
“One of our most attended webinars was on capturing intergenerational wealth. There is quite a lot of interest in it. We’re starting to see more flows going into those sorts of products as well,” he told InvestorDaily.
Mr Walsh added there have been no material changes to legislation on investment bonds for 10 years.
“Even that last change was a positive one, granting official sanction to the ‘scholarship plan’ variations on the investment bond structure in 2003,” he said.
Mr Walsh said investors are also starting to consider using family trusts, although these are now less attractive following changes to the low income tax offset.
