The Challenger Ltd
(ASX:CGF) share price is rising, due to two potential reasons.
Challenger is Australia’s largest provider of ‘annuities’, which are financial products typically sold to retirees who seek reliable income. Challenger was established in the mid-80’s and listed on the ASX in 1987. In 2018, Challenger managed more than $90 billion between its investment portfolio, which is the sum of the money invested by retirees who buy annuities, and its fund management business.
Why The Challenger Share Price Is Rising
As mentioned about, Challenger manages a lot of funds so any rise in share markets is a good news for its underlying value.
The S&P 500 Index rose by 0.61% on Thursday and the ASX 200 is up 0.42% at the time of writing. The Challenger share price is also up 0.6% so far.
Yesterday after the ASX had closed Challenger announced the departure of one of its key management positions.
Challenger’s Funds Management Chief Executive Ian Saines has announced his intention to retire from Challenger later this year.
The company paid tribute to what Mr Saines had achieved in his time. He joined in March 2015 and has apparently played a key role in the success of the Funds Management business which is recognised as one of Australia’s fastest growing active fund managers.
Challenger Managing Director and Chief Executive Officer Richard Howes
said: “Ian will retire from Challenger later this year confident in the knowledge that he has built a talented team with the depth, strength and capability to continue to grow the business and to capture the opportunities ahead.”
The fund manager has commenced an internal and external search for Mr Saines’ successor.
The appointment is very important because a lot of the future success of Challenger will be the ability of its assets to outperform the requirements (and liabilities) of annuity payments over the coming years.
However, I think one of the reliable shares in the free report below could be a better long term pick.
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