POWERED BY MOMENTUM MEDIA
CFS sees benefits from annuities platform performance
Following the 2015 introduction of CommInsure and Challenger annuities on platforms, Colonial First State (CFS) is launching new deferred lifetime annuities via platform off the back of an 80 per cent increase in sales of lifetime annuities.
CFS will offer deferred lifetime annuities on both FirstChoice and FirstWrap which general manager, product and investments, Peter Chun said will change up the underlying strategies to meet the growing needs of a diverse customer base.
“We’re expecting to see strong interest from advisers in these products as customers begin to take greater consideration of longevity risk,” he said.
“Our research will look at ways of evolving this strategy to incorporate new products as they come to market, as well as gaining a deeper understanding of the challenges that advisers and customers face through the different stages of planning for retirement.”
Chun said the increase of interest around the annuities space had been driven by new offerings which better combined various strategies.
“Insights from our existing customer base include an 83 per cent jump in lifetime annuity sales in the last financial year, demonstrating the growing popularity of the so-called ‘income layering strategy’ which combine annuities with account-based pensions and the age pension to meet customers’ retirement needs,” he said.
Deferred lifetime annuities on both FirstChoice and FirstWrap will be available from September.
Recommended for you
Investors have slashed their US equity allocations to the lowest level on record, according to new data from Bank of America.
The message from experts in international trade and economists is that the Australian government should refrain from retaliating with reciprocal tariffs.
The market correction forecast by AMP’s chief economist is in full swing, with three weeks of turbulence culminating in significant losses on Tuesday.
Following a strong risk appetite in January, institutional investors have pulled back in February, with risk-seeking activity dropping to zero amid a decline in equity allocations.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
