Challenger Ltd (ASX: CGF) shares traded slightly lower on Thursday after reporting its March 2018 quarter results, which included an update on its assets under management and annuity sales.
Challenger is one of Australia’s largest fund managers and an annuity provider. An annuity is a financial product which seeks to provide a consistent return for an upfront amount.
This morning, Challenger revealed:
- Total assets under management grew by 3% to $78.6 billion
- Life net book growth of 5.2% in the third quarter
- Total life sales of $1.1 billion, down 13% on last year
- Long-term annuities accounted for 43% of annuity sales
Challenger’s Chief Executive Officer Brian Benari said: “Disciplined implementation of our strategy is continuing to drive business diversification and very healthy growth in assets under management, increasing by $12 billion in the past year.”
“Our Funds Management business remains one of the fastest growing in Australia, having attracted $2.1 billion of net inflows for the quarter despite renewed market volatility.” – Benari
Looking ahead to the full year results, Challenger said it is on track to achieving ‘normalised’ profit before tax of between $545 million and $565 million. According to the company that would represent growth of between 8% and 12% on the prior year.
Before midday on Thursday Challenger shares were trading 1.8% lower at $10.93, according to Yahoo! Finance.
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