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.
AUTHOR
Oksana Patron
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
