Challenger has announced its results for the first half of the financial year 2017 and has confirmed it will be entering into deals with AMP and BT.
In a statement to the ASX yesterday, investment management firm Challenger recorded group assets under management (AUM) at $65 billion, up 12 per cent on the previous corresponding period.
The firm said this growth in AUM drove an 8 per cent increase in normalised net profit after tax to $197 million for the six months ended 31 December 2016.
Statutory profit after tax was lower than the first half of 2016, due to a $22 million one-off gain included in 2016 following the sale of one of Challenger’s boutique investment managers, the statement said.
Challenger’s Life business earnings increased by $18 million (7 per cent) on the previous year, the firm said.
“We have also recently announced that from the end of the September 2017 quarter, it is expected that both AMP and BT Financial Group will add Challenger annuities to their platforms,” Challenger said.
“This will allow Challenger annuities to be easily and efficiently combined with other products to provide secure and dependable incomes for their customers.”
Challenger said its Funds Management earnings fell by $1 million due to lower performance fees, despite attracting strong inflows with $3.2 billion for the half.
“This year has started strongly with good momentum across both our Life and Funds Management businesses,” Challenger chairman Peter Polson said.
“We have a strong pipeline of growth opportunities, which gives us continued confidence in Challenger’s future success.”
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 09:17Fintech should make advice ‘enjoyable’By Adrian Flores
- 09:19Hayne commission driving adviser tech shiftBy Adrian Flores
- 09:19MLC offers adviser incentive for digital platformBy Reporter
- 12 Nov 2018InvestSMART launches maxed feesBy Sarah Simpkins
- 13 Nov 2018Advice demand soaring despite reputation hitBy Adrian Flores
- 12 Nov 2018Former premier, advisers sound alarm on sex discriminationBy James Mitchell
- view all