- (02) 8277 0000
- Address: Level 16 Governor Macquarie Tower, 1 Farrer Place, Sydney NSW 2000
The Aussie TEP Fund
One Investment Group - Investors
The Aussie TEP Fund is an unregistered wholesale managed investment scheme which pools Investors’ money and will invest in a portfolio of Life Policies which have an asset value and a fixed maturity date. These are known as Traded Endowment Policies (TEPs).
The Fund is only available to Wholesale investors and has a minimum application amount of $50,000.
The Fund seeks to provide Pre-Tax (grossed up returns) exceeding 3.50% pa above the 5/10 year Commonwealth Bond rate.
Background.
Between 1930 and 1990, Australia’s major life companies only sold a single style of product- “conventional life insurance” policies.
These traditional policies have an asset value, (called “surrender value” by the Life Company).
TEPs are second-hand conventional life policies.
The Fund has exclusive access to TEPs in Australia under a Supply Agreement with The Outlook Group. The Outlook Group has 20 years’ experience in sourcing TEPs for Investors. (The Fund Manager, Aussie TEP Management Pty Ltd is a member of the Outlook Group).
The Fund aims to provide attractive tax effective secure returns to investors. Quarterly tax effective/exempt distributions are expected to commence from year 5.
Key Features.
Key Features of the Assets and Fund are;
TEP’s:
- “A” Credit Rated issuing Life Companies- AMP, MLC, Comminsure
- TEP acquisition cost will generally carry 90-110% capital guarantees
- TEPs are liquid assets that can be typically cashed within 7-10 days
- TEPs ownership have a statutory title mandated by the Life Act 1995
- TEPs gains are generally taxed as income with a 30% Tax Rebate or are up to 100% Tax-Free (depending on the duration)
- TEP growth is very stable, aligning with the 5/10 year Commonwealth Bond rate and is supported by 70 years of smoothing bonus rates from the issuing life companies
- TEPs come with an ‘In-built” IRR/yield subsidy from the original owner
The Fund:
- Typically allows investors more liquidity options than direct TEP ownership
- is expected provide tax-effective quarterly cashflow from year 5, (with maturing TEPs)
- is expected to provide a mix of tax- effective and tax exempt quarterly cashflow from year 8, (with maturing TEPs)
- The Fund has a Private Binding Tax Ruling
- The Fund has a Supply agreement to source TEPs and technology from Australia’s only TEP source
- No annual income to be assessed to the Fund or unitholders until TEPs mature
- TEP purchase pricing certified by an independent Actuary
fund Resources.
Contact Us.
For additional information, please:
visit aussieteps.com.au
call us on +612 9968 3588
email us at contactus@aussieteps.com.au
If you have any general queries, please contact us via email enquiries@oneinvestment.com.au.
Get in touch with the one investment team
One Investment Group is an independent funds management business specialising in providing Responsible Entity, Trustee, Custody and Administration services.
Contact Information
- Phone: (02) 8277 0000
-
Address: Level 16 Governor Macquarie Tower,
1 Farrer Place, Sydney NSW 2000
We acknowledge the Traditional Custodians of the land on which our office stands. The Gadigal people of the Eora Nation, and pay our respects to Elders past, present and emerging.