I think you are missing the point of the product. This is aimed at delivering a regular inflation adjusted income stream. So yes investors "lose" part of the capital gains the fund makes but in exchange they receive a regular income stream partly funded by the support trust.
this is all about turning retirement savings into a paycheck not leaving it as an inheritance (which lets face it virtually every other equity investment is better at doing).
I don't know whether it will be a success but Australia has seen strong growth in annuities, the MFG product could be a good compliment to an annuity.
Add to My Watchlist
What is My Watchlist?
