Challenger's 'excellent' half-year result
Challenger has announced a record normalised interim net profit of $127 million on the back of record annuity product sales during the six months ended 31 December 2011.
In an announcement released on the Australian Securities Exchange (ASX) today, the company said annuity product sales had increased 74 per cent to $1.27 billion, with funds under management (FUM) up 27 per cent $27.7 billion - a level not seen since before the global financial crisis.
The company said that statutory net profit after tax had been $20 million due to negative investment experience following a further dislocation of debt and equity markets during the latter part of last year.
Commenting on the result, Challenger's newly appointed chief executive officer and managing director, Brian Benari said it had been "excellent".
"Challenger continues to benefit from demographic tail winds as well as today's consumer-driven 'back to basics' approach to investment which favours simple, regulated and guaranteed products," he said.
Benari said Challenger was also starting to reap the full benefit of re-invigorated distribution, advertising and marketing efforts with annuities increasingly being used as a tool in retiree portfolios, enabling client and adviser to build on age pension entitlements with a 'bedrock' level of income.
Reflecting Challenger's bullish attitude, Benari said the company had decided to increase its full-year retail annuity sales growth target to 30 per cent, adding that "even at these levels there remains enormous long-term upside for those able to capture and keep a leadership position in the retirement incomes market".
Challenger's ASX announcement said that its funds management operations - including equity partnerships with ten independently branded boutique funds - recorded a 27 per cent increase in FUM to $27.7 billion.
Benari said this had seen FUM returned to pre-GFC levels.
Recommended for you
In this episode of Relative Return Unplugged, hosts Maja Garaca Djurdjevic and Keith Ford are joined by special guest Shane Oliver, chief economist at AMP, to break down what’s happening with the Trump trade and the broader global economy, and what it means for Australia.
In this episode, hosts Maja Garaca Djurdjevic and Keith Ford take a look at what’s making news in the investment world, from President-elect Donald Trump’s cabinet nominations to Cbus fronting up to a Senate inquiry.
In this new episode of The Manager Mix, host Laura Dew speaks with Claire Smith, head of private assets sales at Schroders, to discuss semi-liquid global private equity.
In this episode of Relative Return, host Laura Dew speaks with Eric Braz, MFS portfolio manager on the global small and mid-cap fund, the MFS Global New Discovery Strategy, to discuss the power of small and mid-cap investing in today’s global markets.
