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New Evergreen, Generation investment bond


Evergreen Consultants has teamed with Generation Life for the launch of an ESG-orientated multi-manager investment bond, believed to be an industry first.

The bond follows a model portfolio developed by Evergreen, called the Responsible Growth Model. The research and ratings firm says the model was created to provide advisers and investors with a long-term portfolio that offers competitive investment outcomes alongside the tax advantages of an investment bond for long-term investors who care about doing good for themselves and future generations.

The model has a long-term return goal of cash plus 3.5 per cent a year. The firm will use shorter-term tilts in its asset allocation – dynamic asset allocation – as recommended by its asset allocation committee and fund manager selection influenced by its recently announced Evergreen Responsible Investment Grade Index (ERIG).

  • As at May 1, the portfolio will include six Australian equities managers, one alternatives manager, two Australian fixed interest managers, seven global equities managers, one emerging markets equities manager, one global fixed interest manager, a global REITs manager, a global infrastructure manager and a cash manager.

    Generation Life is a pioneer in producing flexible investment bonds, developed over the past 17 years. Investment bonds have had a resurgence of late, with the cap on total super account balances.

    They are taxed at 30 per cent within the bond rather than the investors’ marginal rate. Some options within the Generation Life bond range have long-term average tax frates as low as 10 per cent, according to an information document from Evergreen.

    The managers selected for the launch of the bond are:

    • Australian equities: BetaShares Sustainability Leaders ETF; Pendal Australian Share Fund; DNR Australian Equities High Conviction Fund; Australian Ethical Australian Share Fund; Perennial Better Future Trust; and, Inspire Impact Australian Equities Fund.
    • Alternatives: Ardea Real Outcome Fund.
    • Australian fixed interest: Janus Henderson Tactical Income Fund; and Pendal Sustainable Australian Fixed Interest Fund.
    • Global equities: Nanuk New World Fund; BetaShares Global Sustainability Leaders ETF Hedged; State Street Climate ESG International Equity Fund; Regnan Global Equity Impact Solutions Fund; Zurich Investments Hedged Global Thematic Share Fund; Pengana WHEB Sustainable Impact Fund; and, Stewart Investors Worldwide Sustainability Fund.
    • Emerging markets equities: CC RWC Global Emerging Markets Fund.
    • Global fixed interest: Affirmative Global Bond Fund.
    • Global REITs: Resolution Capital Global Property Securities Hedged II. ClearBridge RARE Infrastructure Value Fund Hedged.
    • Cash: Pendal Short-Term Income Securities Fund.

    Angela Ashton, Evergreen co-founder, announced early April the expansion of the executive team with the addition of Michael Ohlsson as executive director, and a new shareholder, as well as Lia Gunawan, who has experience in research and client service. She reports to Ohlsson.

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