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”.

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“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,” he said.

According to Standard Life Investments’ head of Australasia, Simone Bouch, the fund has been already well received by institutional investors in Australia.

“With over $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.