Challenger launches absolute return fund
Challenger has launched its Absolute Return Global Bond Strategies Fund, in partnership with Standard Life Investments, which will target Australian retail investors.
The new fixed income product would be expected to provide a steady stream of income in all market conditions and would target an initial distribution rate of 2.5 per cent a year with distributions paid quarterly.
Standard Life Investments has been appointed an investment manager and Challenger would have exclusive distribution rights to Australian retail channels.
Challenger’s chief executive distribution, product and marketing, Richard Howes, said: “This new fund plays an important role and is a great addition to Challenger’s range of retirement income products”.
“Retirees are looking for low risk products that can provide them with a steady stream of income that’s not linked to the market cycle, with some capital growth.”
According to Standard Life Investments’ head of Australasia, Simone Bouch, the fund has already been well received by institutional investors in Australia.
“With over A$2 billion in assets under management globally and a strong performance track record behind it, we are confident that the strategy will attract a growing Australian retail investor base,” she said.
Recommended for you
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
Three solutions providers – Betashares, Franklin Templeton and Russell Investments – have all launched new ETF products, including one range which uses gearing to help build wealth.
Platinum Asset Management chief executive, Jeff Peters, has shared a progress update on its newly announced turnaround strategy.
There is a role for advisers using inflation-linked bonds in portfolios, according to AXA IM, as the possibility of higher inflation necessitating another US rate hike is not out of consideration.