Benefits of investing in the Challenger Guaranteed Income Plan

Fixed income/value at maturity - Certainty

The Fund offers an agreed level of income regardless of market movements and a fixed value at maturity.

Attractive rates of return

Challenger offers highly competitive earnings rates.

No management costs

Unlike most other retirement income products, the Fund has no investment management fees. This means you get the return that's promised.

Regular income

The amount of your regular payments is agreed at the time you invest in the Fund and is fixed for the duration of your investment term. The amount you receive will depend on:

• How much money you invest

• The maturity date you choose for your investment

• The earning rates on offer at the time of your investment.

Flexibility

You have a choice of maturity date, therefore you can elect how long you want your investment to last.

Secure

The Fund invests in underlying annuities provided by Challenger Life which provides a guarantee through the terms of the annuity. Challenger Life is governed by the statutory rules/regulations set by APRA in order to ensure annuity holders' payments are met.

About the Fund

The Challenger Guaranteed Income Fund provides a known, secure monthly income stream within a managed fund and can help your clients manage their account-based pension cash flows. It can offer your clients peace of mind as the income they will receive over their chosen investment period and the capital amount at maturity are fixed and determined when they invest.

Available on most major platforms, the Fund provides: 

• Fixed monthly distributions until the maturity date, regardless of how investment markets perform

• A range of maturity dates

• The payment of a known maturity value at the maturity date. 

The Challenger Guaranteed Income Fund is available for clients applying for a Significant Investor Visa (SIV) as the Fund meets the requirement of a complying "Balancing Investment under the 2013 and 2015 SIV investment framework.

How we invest your money

Investment strategy and universe

The Fund will predominantly invest in annuities provided by Challenger Life that closely match the income and maturity profile of the relevant class. For the purpose of managing the Fund's cash flow, the Fund will also invest in derivatives provided by Challenger Life. The Fund may also hold cash.

Investment approach

To invest in annuities together with derivatives (collectively referred to as securities) provided by Challenger Life, the terms of which support the distribution and maturity unit price of each class. The securities provided by Challenger Life are referrable to Challenger Life's Statutory Fund.

Challenger Life will invest the assets of the statutory fund. Generally, the fund will be invested in cash, shares, government and corporate bonds, convertible notes, debt instruments, geared and ungeared property investments, infrastructure investments and other assets. The underlying investment objectives of the Statutory Fund include:

• achieving consistent returns from investments that ensure that the guaranteed rate of return offered to policyholders is earned; and

• matching the liability cash flows with cash flows receivable from the underlying assets.

Asset allocation range

• Securities and cash: 0% - 100%