Standard Life Investments has joined forces with Australian retirement specialists Challenger to launch a new product into the Australia retirement income market – marking its first partnership in the region.
The global asset management, announced, via a statement earlier today, that is has teamed up with Challenger, in Australia to launch a new Global Bond product aimed at the retail retirement market. The fund will be distributed under Challenger’s brand and is designed to provide a positive absolute return over the mid to longer term in all market conditions with a steady stream of income, the company said.
The Challenger Absolute Return Global Bond Strategies fund is being launched due to what Simone Bouch, head of Australasia, Standard Life Investments, describes as “a growing need from clients in Australia and globally for retirement-solutions that provide a solid income base combined with excellent risk management, particularly in this low-yield, low-return environment”.
“The Absolute Return Global Bond Strategies fund has already been well received by institutional investors here in Australia, said Bouch, pictured above. “With over A$2bn (£1.3bn) in assets-under-management in total and a strong performance track record behind it, we are confident that the strategy will attract a growing Australian retail investor base”.
The deal with Challenger who will distribute the fund through their retail distribution network is now being implemented with the fund set to be launched in April 2017. It will target an initial distribution of 2.5% a year with distributions paid quarterly, the company said.
Standard Life Investments has a strong track record of building strategic global relationships but this is the first in Australia.
Bouch added: “Strategic partnerships have played a key role in Standard Life Investments’ expansion and we have a strong track record of working with partners across the globe. Collaborating with the right strategic partner in Australia has always been something we have considered to accelerate our growth in the fourth largest pensions market in the world and to further cement our commitment to this market.
Richard Howes, challenger chief executive, distribution, product and marketing, said: “Standard Life Investments is the pioneer in multi-asset, absolute return funds with A$96bn (£53bn) under management in the asset class. These products have an important role to play in retirement portfolios.”