Invesco appointed to manage the Generation Life Tax Effective Australian Share Fund

Invesco Australia Limited (Invesco) has been appointed as the investment manager for the Generation Life Tax Effective Australian Share Fund, replacing Redpoint Investment Management.

John Laver, Head of Investment at Generation Life, said: “We’ve been running the Generation Life Tax Effective Australian Share Fund for over 3 years and have delivered outstanding after-tax returns. The Fund has outperformed against the S&P/ASX200 Total Return Index by 0.34% p.a. (on an after fees and after-tax basis) since inception.¹ This is an outstanding result, when you consider that the index return is a pre-tax return before any investor tax is taken into account.

The appointment of Invesco was in part due to its strong capability in managing portfolios on an after-tax basis both in Australia and globally. We expect that this appointment will continue to help the Fund deliver a positive after-tax return experience for our investors.”

Invesco were selected as the replacement manager based on its experience and track record in managing quantitative factor-based Australian shares strategies in a tax aware environment. Invesco is a highly regarded and credentialed global investment manager with a significant presence and talented portfolio management team in Australia. Invesco manages over US$1.4 trillion globally as at 30 November 2022.

Commenting on their appointment, Invesco Australia’s CEO, Martin Franc stated, “We’re delighted to be partnering with Generation Life in bringing a focussed after-tax approach to managing the Generation Life Tax Effective Australian Share Fund. Our global tax management capabilities and processes, combined with our local on the ground knowledge have been designed to deliver additional tax-alpha without taking on any additional investment risk.”

The Generation Life Tax Effective Australian Share Fund’s investment strategy and objective remain unchanged with Invesco continuing to manage the investment Fund based on the existing strategy and objectives. Importantly, the Fund’s investment management fees and costs have reduced from 0.65% p.a. to 0.54% p.a. following the change.

‘Recommended’ rating by both Lonsec and Zenith

The Generation Life Tax Effective Australian Share Fund has recently been upgraded from ‘Approved’ to a ‘Recommended’ rating by Zenith Investment Partners and has also retained its ‘Recommended’ rating from Lonsec following the appointment of Invesco.

About the Generation Life Tax Effective Australian Share Fund

The Fund aims to provide long-term tax effective total returns, with diversification across a broad range of Australian companies and industries.

The Fund’s investment manager uses a systematic quantitative rules-based approach to build a diversified portfolio by considering factors such as the quality of a company, its growth potential and its implied value relative to its price. The approach considers the tax position of each holding and incorporates additional active investment insights to take advantage of dividends, associated franking credits and other tax effective payments with the aim of delivering an enhanced after-tax return.

The Generation Life Tax Effective Australian Share Fund is part of the Generation Life’s Tax Optimised Series offered through the LifeBuilder, ChildBuilder and FuneralBond investment menu.

About Generation Life 

Generation Life is an Australian leader in investment bonds offering an extensive investment menu with choice and quality for investors. Generation Life has been the number one provider for net funds flows for the last four years². Generation Life has been providing Australians with tax effective investment solutions for over 17 years to help plan for a thriving financial future. For further information visit www.genlife.com.au

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Disclaimer

1. As at 30 November 2022. Past performance is not an indication of future performance. Performance is net of fund taxes, management fees and other operating expenses (if applicable) and is based on the unit prices for the quoted period and excludes the effect of any investor specific transactions such as transaction costs, stamp duty and management fee rebates.

2. Plan for Life, Investment Bonds Market Report for period ended 30 June 2022

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 14 December 2022) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at www.zenithpartners.com.au/RegulatoryGuidelines.

The rating issued for the Generation Life Tax Effective Australian Share Fund, 9 December 2022, is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2022 Lonsec. All rights reserved.