Supplier News

Market-Linked Investments Explained

Foresters Financial offer a range of market-linked investment options as part of our Funeral Bond and Prepaid Funeral Plans including Sustainable, Growth and High Growth.

In an environment of rising inflation how your funds are invested becomes even more critical to your business in managing cost over the years ahead.

Last year Foresters Financial introduced alternatives to our capital guaranteed investment options to assist funeral directors who were seeking diversification and the potential for better long-term returns, in the low cash rate environment. We did this by introducing marketlinked investments that are also responsibly invested.

A market-linked investment is a product where the value of the investment depends on the movements of a particular market. The value of a marketlinked investment represents that of an underlying group of assets and may include assets listed on the ASX (Australian Stock Exchange).

Market-linked investments have greater potential of higher returns over the long-term compared to non-market-linked investments (such as capital guaranteed) and provide for diversification opportunities that would otherwise not be available to individual investors. There are many benefits of market-linked investment options, below are just some:

• Market access and simplicity Providing investors exposure to a wide array of industries, sectors, and companies via one investment.

• Choice of risk profile

Allowing investors to select investments subject to their risk appetite.

• Diversification

Market-linked products spread risk through using a range of asset allocations.

• Return

Over the long term, ASX listed investments have outperformed other asset classes.

• Long-term investment

Combined with the attributes above, a long-term investment strategy provides an opportunity to maximise investment returns.

Market-linked investments provide an alternative to lower returning asset classes such as fixed income or capital guaranteed products. The lower returns of these asset classes may result in an erosion of capital as inflation reduces the real value of investment

returns.

Foresters Financial offer a range of marketlinked investment options as part of our Funeral Bond and Prepaid Funeral Plans including Sustainable, Growth and High Growth. Policy. As such, market-linked products are invested in an Ethical and Sustainable manner.

Market-linked investments may offer an effective and simple investment vehicle for you and your business to diversify your investments and lessen the impact of rising costs over the long-term.

If you would like to find out more about our market-linked investment options, please contact Tina Gacovski by calling 0439 028 290 or emailing tinag@forestersfinancial.com.au.

Please consider the information contained in the Product Disclosure Statement and Target Market Determination before deciding to acquire the products. Please obtain independent professional advice before making any decisions.

Financial services are provided by Foresters Financial Limited (ABN 27 087 648 842, AFS Licence No. 241421). Past performance information is not a reliable indicator of future performance.

There has been a steady uptake of our market-linked investment options by our funeral director clients and members since launching, with approximately 15% of all new policies being a market-linked investment option.

Market-linked investments have greater potential of higher returns over the longer-term compared to non-market-linked investments

In keeping with our responsible investor ethos, you can be assured that all Foresters Financial products are made in accordance with our Responsible Investment