Why has the share dropped., page-27

Are you referring to Australian interest rates or something more international like US interest rates or 10 year treasuries?

@donnyk01

CGF's Life investment assets are denominated in several different currencies (and are subsequently currency hedged, see breakdown below):



Therefore, the bond portfolio’s mark-to-market is sensitive to movements in global yields, not just AUD yields.

But, as I have pointed out before on these threads, rising yields will be a net positive for CGF from a cashflow perspective. For, the Company will be able to reinvest maturing bonds at higher yields, whereas the payments to annuity holders on existing contracts will remain unchanged.

Cheers