Questions & Answers
  1. What is a T Zero or a T Zero Plus?
  2. Who issues the policy or my investment?
  3. Why am I buying life policies?
  4. Will I get a fixed yield or rate of return?
  5. How sensitive is my investment to under / over performance based upon changes in bonus rates?
  6. Why is there no Product Disclosure Statement?
  7. How certain is the tax outcome of the investment?
  8. How safe is my investment?
  9. How are my policies valued?
  10. If I buy a 5 year T Zero or T Zero Plus, how am I taxed?
1. What is a T Zero or a T Zero Plus?

T Zero stands for Tax Effective Zero Coupon Bond. A T Zero Plus is the same as a T Zero, but you may add to your investment annually. Both names are just brand names for second-hand life policies.

2. Who issues the policy or my investment?

AMP Life Ltd, AXA Life Ltd, Comminsure Ltd and MLC Ltd issue the policies, register the investor as the new owner and pay the maturity sum.

3. Why am I buying life policies?

Long before Managed Funds were invented, most Australians used Whole of Life policies to save and invest. The Outlook Group Pty Ltd buys these, strips out the life insurance and converts these to 5 or 10 year Endowment policies. They are then marketed to investors under the brand name of T Zero or T Zero Plus Growth Bonds. The policies have retained their prior asset value, even though the bulk of life insurance has been removed.

4. Will I get a fixed yield or rate of return?

We quote a Tax Exempt / Tax Paid yield when you invest. This is the return on your investment if the Life Company exactly pays the Assumed Maturity Value to you. At time of sale, we need to make a simple assumption about growth rates for your policies (i.e. bonus rates). If they remain unchanged during your investment then the quoted yield will result. If the bonus rates rise, so will your yield. If bonus rates fall, this will reduce your expected yield.

5. How sensitive is my investment to under / over performance based upon changes in bonus rates?

We estimate your up (or down) side will be approximately 1% yield. With stable bonus rates, the returns are highly predictable.

6. Why is there no Product Disclosure Statement?

The Outlook Group Pty Ltd distributes second policies (existing financial products). As there is not the creation of a new financial product, no PDS is required.

7. How certain is the tax outcome of the investment?

The ATO has issued us with an Advance Opinion on the product which is supplied on request. You can gain a high level of confidence about tax certainty from this written ATO advice.

8. How safe is my investment?

Your investment carries a AA Issuer Credit Rating (same as 4 major banks) Capital Guarantees, 7-10 day liquidity and statutory title. You actually own the policies direct and not via a 3rd party (e.g. managed fund).

9. How are my policies valued?

The Outlook Group Pty Ltd provides a valuation service to Investors by way of a spreadsheet model at time of purchase. Values are updated as often as the investor wishes using this model.

10. If I buy a 5 year T Zero or T Zero Plus, how am I taxed?

If you are a Non Super Investor, then the Maturity Payout less your Investment Cost (including annual top-ups for T Zero Plus investors) is taxable income in the year you receive the payment. You will then receive a 30% Tax Rebate, which makes the gain tax-free to 30% tax rate. If you are a Super / Pension fund, the gain is exempt income and is not reported in the fund return.

ABN 44 105 079 696   Telephone: (02) 9968 3588    Email: contactus@outlookgroup.com.au
Postal: PO Box 777 Spit Junction NSW 2088   
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