Platform growth challenge

With $2.3 billion in funds under management (FUM) and sitting at position 18, the Challenger Financial Group has just made it into this year’s list of the Top 20 largest platform providers.

In addition to its in-house platform, administered by Challenger Managed Investments, the group’s products are available on a wide range of industry platforms, including Asgard and Navigator.

David Asplin, general manager of distribution, explains: “We have been getting significant increases in all of our key platforms over the last 12 months, and we’ve been heavily focused on forging relationships with key platforms and supporters of those platforms.”

Asplin adds: “Across the board people are seeing us offer a broader range of quality products, rather than just the Howard Mortgage Trust.”

With the acquisition of Associated Planners last year, it doesn’t take much number crunching to figure out the drivers for growth during 2004.

At the time of acquisition, Associated Planners funds under advice was between $4.5 billion and $5 billion.

And Asplin says the firm has just had another record month, with $50 million in fund flows across all platforms.

“We are seeing that distribution arrangement via platforms work exceptionally well and we will be bringing out some pure Challenger-manufactured funds as well as more multi-manager arrangements.”

While the group concentrates on attracting fund inflows to products on its own platform and those listed with third parties, in actual fact Challenger’s funds under administration are now greater than funds under management, showing that its future income will also depend on its administrative expertise.

But for now, Asplin says the major focus of the group is a major internal integration of all registry systems, as well as the recent HSBC acquisition.

Asplin adds: “I think we’ve got contemporary offerings, so the boutique Australian share portfolio is enjoying health funds flow. It’s all about responding to what the advisers want.”

— Larissa Tuohy