CHALLENGER INFRASTRUCTURE FUND 
By MARKET RELEASE
ASSETS AND FUNDS UNDER MANAGEMENT - 31 MARCH 2013 18 April 2013, Sydney - Challenger Limited (ASX:CGF) today announced that its total assets and funds under management at 31 March 2013 was $40.9 billion, an increase of 30% for the 12 months and up 7% for the quarter.
CEO Brian Benari said: "We are continuing to see strong growth in sales of our longer term annuity products. Lifetime sales, representing Liquid Lifetime and Care Annuity sales, comprised 18% of total retail annuity sales for the quarter, resulting in a growing proportion of sales from these relatively new products. As we approach the final and seasonally busiest sales quarter we are on track to deliver retail annuity net book growth of $500 million or 8% for the year to 30 June 2013.
"Improving the mix of new sales to favour Lifetime and longer-tenor product assists in increasing the future rate of net book growth, enables investment in longer dated assets which earn higher illiquidity premiums and is more efficient to distribute and administer.
"Total Funds Management FUM now stands at $37.8 billion and we are now Australia's ninth largest fund manager with growth driven by further strong inflows into our boutique funds management business. Fidante Partners FUM reached $26.4 billion, an increase of 49% over 12 months." said Mr Benari.
Life's AUM was $10.2 billion at 31 March 2013. Challenger Life's retail annuity sales for the quarter were $354 million, which was broadly in line with sales in the prior corresponding period. Retail annuity sales comprised $290 million of fixed term annuities and $64 million of Liquid Lifetime and Care Annuities. Liquid Lifetime and Care Annuity sales comprised 18% of total retail sales, up from
4% in the March 2012 quarter. Institutional product sales were $31 million for the quarter.
Net retail book growth for the nine months to 31 March 2013 was $301 million representing 4.6%
growth on the opening Life retail annuity book value of $6,553 million.
Jana Flanagan, Investor Relations Analyst, Challenger Limited 02 9994 7815
Stuart Barton, General Manager Corporate Marketing and Communications, Challenger Limited, 02 9994 7008
Challenger Limited A.B.N 85 106 842 371
Disclaimer: The forward looking statements, estimates and projections contained in this release are not representations as to future performance and nothing in this release should be relied upon as guarantees or representations of future performance.
Funds Management
Funds Management's FUM at 31 March 2013 was $37.8 billion, up 29% for the 12 months and up
7% for the quarter. Growth in FUM has been driven by strong net flows of $1.2 billion and positive investment markets.
Fidante Partners FUM reached $26.4 billion, an increase of 49% over 12 months and 10% over the quarter. Net flows for the quarter were $1,176 million, up from $614 million in the March 2012 quarter, comprising $809 million in Fixed Income products and $367 million in Equity products.
Aligned Investments FUM increased by 1% in the quarter to $11.4 billion, with net inflows of $56 million due principally to an increase in institutional property mandates offsetting outflows from the Howard Mortgage Fund.
ENDS
Further enquiry: Stuart Kingham, Head of Investor Relations, Challenger Limited, 02 9994 7125Jana Flanagan, Investor Relations Analyst, Challenger Limited 02 9994 7815
Stuart Barton, General Manager, Corporate Marketing and Communications, Challenger Limited, 02 9994 7008
Challenger Limited A.B.N 85 106 842 371
Disclaimer: The forward looking statements, estimates and projections contained in this release are not representations as to future performance and nothing in this release should be relied upon as guarantees or representations of future performance.
Assets and Funds Under Management, net flows and sales
$m | Q3 13 | Q2 13 Q1 13 Q4 12 Q3 12 |
Total Assets and Funds Under Management | 40,873 | 38,284 35,227 33,429 31,412 |
Represented by: Funds Management Fidante Partners1 Equities Fixed income | 13,409 13,005 | 12,021 9,695 8,879 8,262 11,963 11,226 10,372 9,507 |
Total Fidante Partners | 26,414 | 23,984 20,921 19,251 17,769 |
Aligned Investments2 Fixed income3 Property Institutional mandates Challenger Diversified Property Group (ASX:CDI) (gross assets) Infrastructure Institutional mandates Challenger Infrastructure Fund (ASX:CIF) (adjusted equity value) | 7,621 2,199 883 677 4 | 7,815 7,637 7,516 7,528 1,910 1,845 1,835 1,736 881 888 869 884 690 885 1,136 1,105 55 430 410 367 |
Total Aligned Investments | 11,384 | 11,351 11,685 11,766 11,620 |
Total funds under management | 37,798 | 35,335 32,606 31,017 29,389 |
Average Fidante Partners Average Aligned Investments | 25,460 11,478 | 22,372 20,364 18,426 17,026 11,449 11,838 11,708 11,491 |
Average total funds under management7 | 36,938 | 33,821 32,202 30,134 28,517 |
Life Fixed income and cash4 Property5 Infrastructure6 Equity and other | 8,002 1,575 414 241 | 7,974 7,891 7,388 7,046 1,541 1,484 1,539 1,533 427 623 618 571 228 170 228 230 |
Total Life investment assets | 10,232 | 10,170 10,168 9,773 9,380 |
Average Life investment assets7 | 10,239 | 10,032 9,908 9,637 9,013 |
2%
4%
16%
Q2 132%
4%
15%
Q1 132%
6%
14%
Q4 122%
6%
16%
Q3 123%
6%
16%
78%
79%
78%
76%
75%
Property
Fixed income and cash
Infrastructure assets
Equity and other assets
1 Fidante Partners comprise 11 co-owned, separately branded active boutique investment managers from which Fidante receives distribution and administration fees, and shares in the profits from these businesses through its equity ownership.
2 Aligned Investments develops and manages products under Challenger's brand for the Life business and third party institutional investors.
3 Fixed income (including asset backed securities).
4 Fixed Income is reported at Q3 2013 net of debt of $195m (Q2 2013 $236m).
5 Property is reported at Q3 2013 net of senior debt of $574m (Q2 2013 $611m). Property includes direct and indirect holdings and a small REIT holding.
6 Infrastructure is reported at Q3 2013 net of debt of $206m (Q2 2013 $206m).
7 Average total funds under management and Life investments calculated on a monthly basis.
Analysis of flows | Q3 13 | Q2 13 Q1 13 Q4 12 Q3 12 |
Funds Management net flows Fidante Partners Aligned Investments | 1,176 56 | 2,110 633 1,858 614 (323) (195) 2 31 |
Net flows | 1,232 | 1,787 438 1,860 645 |
Life sales Fixed Term Lifetime | 290 64 | 505 449 590 351 69 32 17 13 |
Total Retail | 354 | 574 481 607 364 |
Institutional | 31 | 844 77 - 415 |
Sales | 385 | 1,418 558 607 779 |
Reconciliation of Total Group Assets and Funds Under Management Funds Management (FUM) Life investment assets Adjustments to remove double counting of cross holdings: Life Company investment in CDI and CIF Life Company investment in fixed income, property and infrastructure | 37,798 10,232 (327) (6,830) | 35,335 32,606 31,017 29,389 10,170 10,168 9,773 9,380 (329) (496) (488) (460) (6,892) (7,051) (6,873) (6,897) |
Total Assets and Funds Under Management | 40,873 | 38,284 35,227 33,429 31,412 |
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