In the ever-shifting landscape of fixed income investments, Luanna Teo, Vice President of Brand Development at Knighthead Annuity & Life Assurance Company, offers a fresh perspective. Her presentation at the Hubbis Wealth Planning & Structuring Forum in Singapore 2026 challenges the conventional wisdom that fixed income is synonymous with bonds, deposits, and structured products. Instead, she advocates for a broader approach, emphasizing the importance of understanding clients' desired outcomes and the role of annuities in achieving those goals.
Teo's central argument is that many clients seeking fixed income are actually seeking certainty. In a market characterized by inflation, rapid rate changes, geopolitical turmoil, and AI-driven valuation shifts, the need for stability and predictability is paramount. Annuities, she argues, can be a valuable tool to provide this certainty, complementing traditional fixed income instruments rather than replacing them.
The rise of annuities is evident in global sales figures. US retail annuity sales reached a staggering USD 461.3 billion last year, marking the fourth consecutive year of record sales. Knighthead, in particular, has seen significant momentum, recording USD 2 billion in sales over the past eight months, with China, Japan, and Taiwan as key markets. This growth is driven by clients' desire for guaranteed returns and income streams, especially in an aging and asset-rich population.
Knighthead's annuity solutions are designed to provide principal protection and guaranteed returns or income streams. The company's segregated master trust structure, independent custody and audit arrangements, and conservative investment approach ensure financial strength. The platform supports three main product types: multi-year guaranteed annuities (MYGAs), fixed-index annuities, and single premium immediate annuities (SPIAs).
MYGAs offer a fixed guaranteed rate over a selected term, typically three to 10 years, providing predictable cash flows. Fixed-index annuities allow clients to participate in equity indices while protecting principal against market downturns. SPIAs are designed for retirement income planning, offering guaranteed income payments over a defined period or for life.
One of the key advantages of Knighthead's annuities is their flexibility. Selected products include features such as penalty-free withdrawals, death benefits, and beneficiary nomination, making them suitable for estate planning purposes. The company's products are available in multiple currencies, ensuring accessibility for international clients.
Guaranteed illustrations are a critical aspect of Knighthead's annuities. Teo emphasizes that the figures shown in the policy examples are guaranteed, not merely projections. This provides clients with a clear understanding of the expected outcomes, contrasting with traditional insurance illustrations that may show higher but non-guaranteed returns.
The breakeven profile of Knighthead's products is another important consideration. Selected products can reach breakeven in around 15 months, while some three-year and five-year products can do so in about one year. This is particularly relevant for clients concerned about lock-up, liquidity, and insurance-style breakeven periods.
In conclusion, Teo's presentation challenges the traditional fixed income conversation, urging advisers to assess annuities as part of a broader income and capital preservation toolkit. Annuities are not a one-size-fits-all solution, but they can be a valuable tool for clients seeking defined outcomes and certainty in an uncertain world. From my perspective, the future of fixed income investments lies in understanding clients' needs and providing tailored solutions that offer both stability and growth potential.
