Challenger Profile
Challenger Limited operates as an investment manager.
Segments
The company operates through two operating segments, Life and Funds Management.
Life
This segment comprises Challenger Life Company Limited (CLC), Australia’s major provider of annuities and guaranteed retirement income products; and Accurium Pty Limited, a provider of self managed superannuation fund actuarial certificates.
As Australia’s major annuity provider, Life provides guaranteed incomes to approximately 75,000 Australian retirees. Life’s annuity products appeal to retirees because they provide security and certainty of guaranteed income while protecting against risks from market downturns and inflation. Lifetime annuities protect retirees from the risk of outliving their savings by paying guaranteed income for life.
Life’s products are distributed through both independent financial advisers and financial advisers that are part of the administrative platforms serviced by the four major Australian banks and AMP (the ‘major hubs’). Life’s products are included on all major hub approved product lists and are available on other major investment and administration platforms.
Life also has an annuity relationship with Mitsui Sumitomo Primary Life Insurance Company Limited, a major provider of Australian dollar denominated annuities in Japan.
Funds Management
This segment focuses on the retirement savings phase of Australia’s superannuation system by providing products seeking to deliver superior investment returns. Funds Management is also expanding into international markets.
As one of Australia’s asset managers, Funds Management invests across a range of asset classes, including fixed income, commercial property and Australian and international equities. The Funds Management segment comprises two business divisions, Fidante Partners and Challenger Investment Partners (CIP).
Fidante Partners includes various investments in boutique investment managers that each operate under their own brands. Fidante Partners provides administration and distribution services to the boutiques and shares in the profits of these businesses through equity ownership. Fidante Partners also has a presence in Europe with interests in the U.K.-based alternative asset managers.
CIP develops and manages assets under the company’s brand for CLC and on behalf of third-party institutional investors. The investments managed by CIP are primarily in fixed income and commercial property.
Strategy
The company’s four strategic pillars are to increase the Australian retirement savings pool allocation to secure and stable incomes; be recognised as the leader and partner of choice in retirement income solutions with a broad product offering; provide customers with relevant investment strategies exhibiting consistently superior performance; and deliver superior outcomes to customers and shareholders through a highly engaged, diverse and agile workforce committed to sustainable business practices and a strong risk and compliance culture.
Regulation
The company is regulated by the Australian Prudential Regulation Authority, the Australian banking, superannuation, general insurance and life insurance regulator.
