Australian investment management firm Challenger has launched the Absolute Return Global Bond Strategies fund in partnership with Standard Life Investments.
Under the partnership, Standard Life Investments has been appointed investment manager and Challenger will have exclusive distribution rights to Australian retail channels.
The new fixed income product is aimed to retirees “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,” said Richard Howes, chief executive distribution, product and marketing at Challenger.
Standard Life Investments head of Australasia, Simone Bouch, said: “The fund has already been well received by institutional investors here in Australia. With over AUD $2bn in AUM globally and a strong performance track record behind it, we are confident that the strategy will attract a growing Australian retail investor base.”
The fund targets an initial distribution rate of 2.5% a year with distributions paid quarterly.