SEARCH
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”.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
As the worsening Sydney COVID-19 outbreak dampens the nation’s prospects of meaningful economic recovery from the pandemic, one fund manag...
The investment management group has downplayed its profit expectations ahead of reporting season but says it is “continuing to build on st...
Despite unemployment falling to pre-pandemic levels, the central bank still thinks it’s too early to count its chickens on the success of ...
Get notifications in real-time for staying up to date with content that matters to you.
Read More
