In the world of fixed income investing, where stability and certainty are highly sought after, 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 traditional notion of fixed income, urging advisors to rethink their approach and consider the underlying client needs. Teo's argument is compelling: many clients seeking fixed income are actually seeking certainty, not just in the form of bonds, deposits, or structured products, but in the broader sense of financial stability and security.
Teo's central message is that annuities, particularly fixed-rate and fixed-index annuities, can be a valuable addition to the fixed income toolkit. She emphasizes that annuities are not meant to replace traditional fixed income instruments, but rather to provide an alternative for clients who prioritize defined outcomes. The global demand for annuities is on the rise, with US retail annuity sales reaching a staggering USD 461.3 billion last year, and Knighthead has seen significant momentum in international markets, recording USD 2 billion in sales over the past eight months.
One of the key insights Teo offers is that clients seeking fixed income may have diverse needs, such as capital preservation, predictable cash flow, lower portfolio volatility, diversification, or retirement confidence. Annuities, with their guaranteed returns and income streams, can address these needs effectively. Teo highlights Knighthead's segregated master trust structure, independent custody and audit arrangements, and conservative investment approach as key factors that contribute to the financial strength and reliability of their annuity solutions.
The Knighthead platform offers three main annuity solutions: multi-year guaranteed annuities (MYGAs), fixed-index annuities, and single premium immediate annuities. MYGAs provide a fixed guaranteed rate over a selected term, typically three to ten years, while fixed-index annuities allow clients to participate in equity indices while protecting principal against market downturns. Single premium immediate annuities are designed for retirement income planning, offering guaranteed income payments over a defined period or for life.
Teo's discussion of policy illustrations is particularly insightful. She emphasizes that the figures shown in the policy examples are guaranteed, not just projections. This is a critical distinction, as it ensures that clients have a clear understanding of the expected outcomes. Teo also highlights the breakeven profile of selected products, noting that they can reach breakeven in around 15 months, which is an important consideration for clients concerned about lock-up, liquidity, and insurance-style breakeven periods.
In conclusion, Teo's presentation encourages advisors to view annuities as a valuable tool for addressing client needs beyond traditional fixed income instruments. By focusing on the client's desired outcome, advisors can better tailor their recommendations and provide a more comprehensive solution. Annuities, with their guaranteed returns and income streams, can offer a sense of certainty and security in an uncertain world, making them an attractive option for clients seeking defined outcomes.
