Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Challenger Shares Slide On Higher Assets, Lower Sales

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 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. 

Did you know it’s free to join The Rask Group’s Investor Club Newsletter? It’s a regular (usually weekly) news and educational update on financial markets, investing and unique strategies. Join today and get ready to laugh and learn.

Click here to join The Rask Group’s Investor Club Newsletter Today

 

Hey, you, read this disclaimer: This article contains information only. It is not financial advice. It is no substitute for trusted and licensed financial advice and should not be relied upon. By using our website you agree to our Code of EthicsDisclaimer & Terms of Use and Privacy Policy. Also, don’t forget, past performance is not a reliable indicator of future performance. 

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content