Zenith Investment Partners has endorsed the NSW government’s annuity-style products as an effective inflation-beating vehicle, handing down a ‘recommended’ rating.
The research house issued an official “view” on the products yesterday explaining they provide “annuity style income stream over a defined term via a debenture issued by the NSW Treasury Corporation” and play a role in hedging against inflation risk.
“[Waratah annuity bonds] represent an effective way for smaller investors to access protection against inflation outside the more mainstream avenues of fixed-term indexed annuities or an inflation-linked bond fund.”
“Traditionally, access to direct inflation linked bonds and/or amortising bonds has been the domain of large scale institutional investors.”
The communication from Zenith – which attaches a “recommended” status to the products – said they are “best used to secure the defensive portion of a portfolio and to hedge against inflation over the long term” but added that they should form part of a “holistic approach to retirement planning”.
Geopolitical risks and trade tensions rank as the greatest threat to global financial stability in 2020, according to a survey by the Deposi...
The AGM was a chance for shareholders to send a message. They didn’t take it. ...
Emerging markets have quickly become one of the only pockets left for investors to find yield. But how long can these growing economies cont...
Get notifications in real-time for staying up to date with content that matters to you.
