They can only be purchased from the Endowment Bond Exchange website at ebx.com.au, where live prices in available maturities will be displayed every day.
 
Endowment bonds are a new financial product that are unique in the Australian retail market and are a genuine alternative to an annuity, but with more advantages.
 
Chief Executive Officer of Endowment Bond Exchange Ltd, Stephen Duchesne said, “Each bond, which is backed by State Government guaranteed bonds or wholesale bank deposits, has a standard pay-out of $10,000 each and matures on 30 June in the year that you select when you purchase it on the website.
 
“The purchase of a number of bonds with different annual maturity dates allows investors to create a sequence of future payments at times and amounts of their own choosing, including the start date which could be deferred many years into the future.
 
“In short, this important new financial product will allow individual investors to construct their own personalised income stream as far out as 2043, something which has not previously been possible to do in Australia.
 
“The purchase price of the Endowment Bonds is a function of interest rates at the time of purchase and the time to maturity of the individual bond, and will change at least on a daily basis.
 
“For instance, an Endowment Bond issued today by the EBX group maturing on June 30, 2025 would have a lower price than a bond maturing on June 30, 2020.  “It’s about giving people the ability to buy a known future outcome today, and retaking control of their financial future.
 
“Endowment Bonds bond are designed to appeal to anyone who wants or needs to plan for fixed cash flows, at predetermined times, whether it is for retirement income, school fees, philanthropy, or any other purpose where there is a known future need. “
 
“We expect particularly strong interest from the SMSF sector.”
 
“The reality is that many individuals, and organisations, such as self managed super funds, and charities need targeted fixed cash flow at predetermined times. A portfolio of Endowment Bonds may be the solution,” he said.
 
“Investors have learnt they can’t time the market and rely on cash flow at future dates based on their equity portfolios alone. Endowment Bonds reflect this sentiment and provide a new planning and risk management tool to reduce this future uncertainty and volatility.
 
“The GFC has changed the investment landscape, especially in relation to retirement planning.
 
“People are looking for a greater level of certainty in their retirement.  The old ‘invest and hope’ paradigm is rapidly being replaced by a demand for outcomes, not volatile and unreliable possibilities.
 
“Endowment Bonds are an existing asset class being used in a new way,” Mr Duchesne said.
 
Technically an EBX Endowment Bond is a fixed income product, issued by Endowment Bond Ltd (“EBL”) and backed by a pool of deposits with banks or State Government guaranteed bonds with the same maturity date, known as  ‘Underlying Investments’, which is the investor’s choice.
 
Instead of being annual yield focused, an Endowment Bond is maturity based, with a payout of $10,000 per bond on the 30 June in the nominated year of maturity.

Maturity dates available range from one year through to 30 years, with the payment date always being within 5 days of the Bond’s June 30 Maturity date in the particular year chosen.
 
“We have designed Endowment Bonds at the lower end of the risk spectrum which makes it a planning tool without peer. The bonds offer investors more certainty and peace of mind, which is a keenly sought commodity since the GFC” Mr Duchesne said.

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