Normal 0
false false false
MicrosoftInternetExplorer4
st1:*{behavior:url(#ieooui) }
/* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}
The ‘correcting’ and steepening of the yield curve over the last three months, combined with a new awareness from the Government and retirees of the market risk to which they have been exposed, will help make annuities “the product for the times”, hopes the chief executive of Challenger’s life business, Richard Howes. Last month, Challenger bolstered the rates on its annuities, such that a 15-year product with ‘nil residual capital value’ – that is, one where all the initial capital is progressively returned over the term – will pay 6.5 per cent annual interest, plus the return of the principal. Challenger’s annuities are backed by a mix of investment grade corporate debt, infrastructure bonds and property.
John Hamer, the Australian head of Nicholas Applegate, the San Diego-based equities and bond manager, got the phone call about 30 minutes before he was to have an important meeting with his largest client, AMP. Both his sales office in Sydney and the client service office in Melbourne were to be closed with just a few days notice.
