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”.
The wealth and trustee arm of MyState, TPT Wealth, has seen a slight increase of 1 per cent during the first quarter of financial year 2021,...