Challenger and Standard Life strike global bond deal
Challenger has entered into a partnership arrangement with Standard Life Investments to bring a global bond product to Australian retirees.
The relationship between the two companies was announced at the same time as Challenger released its result to the Australian Securities Exchange (ASX) today with the company saying the bond product would be launched under the Challenger brand and be aimed at providing capital stability with a steady income stream.
It said the arrangement represented the first time Standard Life Investments had entered into a partnership of this kind in Australia with a retail focus.
The new product, to be known as the Challenger Absolute Return Global Bond Strategies Fund expected to find favour among the superannuation funds already utilising Challenger's annuities products, with the company's announcement saying it was being launched as the superannuation industry moves towards a greater focus on sustainable retirement incomes with innovative products to meet the needs of Australia's ageing population.
Commenting on the initiative, Challenger chief executive, distribution, product and marketing, Richard Howes said it expanded the range of products that are aimed at the retirement income market.
"Standard Life Investments is the pioneer in multi-asset, absolute return funds with $96 billion under management in the asset class. These products have an important role to play in retirement portfolios," he said.
Standard Life Investments head of Australasia, Simone Bouch said his firm was pleased to partner with Challenger which would distribute the fund through its retail distribution network.
Under the partnership, Standard Life Investments has been appointed investment manager and Challenger will have exclusive distribution rights to the Australian retail channels, leveraging Challenger's brand and extensive retail distribution capability and complementing its annuity offering.
The fund will be launched in April, targeting an initial distribution of 2.5 per cent a year with distributions paid quarterly.
Recommended for you
Being able to provide certainty about redemptions is worth fund managers pursuing when targeting the retail market even if it means sacrificing returns, according to Federation Asset Management.
Regal chief investment officer Philip King will step down from listed investment company VGI Partners Global Investments after the LIC reported a loss of $17.6 million for FY25.
Real asset commentators have shared what advisers should be considering when conducting their due diligence on the assets and how they can mitigate illiquidity for retail clients.
GQG Partners has announced net flows were down 28 per cent in the first half of 2025, with redemption pressure particularly hitting Australia.
