Challenger courting platform partner

Challenger Financial Services Group has flagged its intentions to create a platform-based unitised annuity investment option aimed at financial advisers and their clients.

In the group’s report to shareholders, Challenger chief executive — life Richard Howes said the group had “initiated discussions with several leading platform (wrap) providers” in the third quarter of the 2008-09 financial year.

In the same report, Challenger chief executive officer Dominic Stevens also pointed to the development of its investment management platform “at an opportune time in the markets” as a key strategy for growth.

Joint chief executives Rob Woods and Rob Adams also said they would “devote the next year to achieving consistent investment performance, developing further income-oriented products and strengthening our distribution relationships”.

Stevens added that growth through acquisition is also “a distinct possibility for 2010” for the Challenger group.

“As our firm’s acquisition track record has shown, highly attractive cost synergies can be derived from discrete funds management purchases, while closed annuity books acquired at near book value offer compelling platforms for generating spread income.”

Howes also noted that “following the full consolidation and reinvestment of the AXA book, we continue to evaluate both the domestic and offshore acquisition landscape”.