Effective immediately, the new administration fee is 0.30 per cent per annum. 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 cent per annum.
KeyInvest general manager of sales and operations Derek Emery 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 said.
“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.”
Mr Emery said that the investment bond sector has had a resurgence of sorts over recent years, particularly since the introduction of superannuation caps.
So IFA is now going like Gumtree, reporting anything that is of little interest and providing an advertorial base for fund managers?