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CHALLENGER LIMITED Fund Information / Factsheet 2012

Apr 18, 2012

64641_rns_2012-04-18_89c78fed-68eb-47ac-abf8-fa211718013f.pdf

Fund Information / Factsheet

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MARKET RELEASE

ASSETS AND FUNDS UNDER MANAGEMENT - 31 MARCH 2012

19 April 2012, Sydney – Challenger Limited (ASX:CGF) today announced that as at 31 March 2012 its assets and funds under management (AUM) totalled $31.4 billion, representing an increase of 16% since 31 March 2011. AUM was up 6% on the prior quarter reflecting continued strong life sales, positive boutique inflows and positive market movement for the period.

Challenger CEO Brian Benari said “With retail Life sales of $364 million for the quarter, we remain on track and continue to target our 2012 retail Life sales growth of 30% and net book growth of 10%. We also reaffirm Life’s 2012 cash operating earnings forecast of $435 million and a consistent cash operating earnings margin over the second half. Positive trends in our Funds Management business have also continued with strong flows into our boutique partnerships, particularly into fixed income products.”

Challenger Life sales for the quarter were $779 million, incorporating retail sales of $364 million and institutional sales of $415 million. Retail sales were up 23% for the quarter and up 34% financial year to date compared to the prior corresponding periods (excluding the $444 million conversion of the High Yield Fund in February 2011). Consistent with prior years, retail sales were lower than the December quarter reflecting seasonal impacts. Life’s assets under management totalled $9.4 billion, up 14% since 31 March 2011 and up 8% since 31 December 2011.

Boutique FUM increased a further $1.5 billion or 9% for the quarter resulting in total boutique FUM of $17.8 billion as at 31 March 2012, driven by positive net flows and market linked performance. Total Funds Management net inflows of $645 million for the quarter consisted of net inflows of $614 million into the Boutique partnership funds and $31 million into the Aligned funds.

Ends

Chantal Travers, Investor Relations, Challenger Limited. 02 9994 7560 Stuart Barton, Head of Marketing & Communications, Challenger Limited. 02 9994 7008

Further enquiry:

Challenger Limited A.B.N 85 106 842 371

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Assets and Funds Under Management

as at 31 March 2012

as at 31 March 2012
31 Mar 12 31 Dec 11 30 Sep 11 30 Jun 11
$m $m $m $m
Total Assets and Funds Under Management 31,412 29,567 27,579 27,909
Represented by:
Funds Management
Boutique Partnerships (a)
Equities 8,262 7,549 6,700 7,211
Fixed income 9,507 8,695 7,596 7,637
Total Boutique funds 17,769 16,244 14,296 14,848
Aligned and Other (b)
Infrastructure
Institutional mandates 1,105 1,100 1,101 1,001
Challenger Infrastructure Fund (ASX:CIF)
(adjusted equity value) 367 352 327 311
Property
Institutional mandates 1,736 1,757 1,751 1,721
Challenger Diversifed Property Group (ASX:CDI)
(gross assets) 884 871 873 874
Fixed income(c) 7,528 7,397 7,425 4,853
Total Aligned and Other funds 11,620 11,477 11,477 8,760
Total funds under management 29,389 27,721 25,773 23,608
Average Boutique funds(d) 17,026 15,399 14,614 14,311
Average Aligned and Other funds(d) 11,491 11,443 10,714 8,718
Average total funds under management 28,517 26,842 25,328 23,029
(a)Boutique Partnerships are co-owned, separately branded and licensed businesses from which Challenger receives dividends, distribution fees and administration fees.
(b)Aligned and Other includes asset classes where Challenger Life may be a signifcant investor and that are typically Challenger branded.
(c)Fixed income includes mortgages.
(d)Average assets and funds under management are calculated on a monthly basis. .
Life
Fixed income and cash 7,046 6,369 6,430 6,114
Property(e) 1,533 1,552 1,565 1,535
Infrastructure(f) 571 569 509 479
Equity and other assets 230 219 243 259
Total Life investment assets 9,380 8,709 8,747 8,387
Average Life investment assets(d) 9,013 8,670 8,513 8,350

(e) Property is reported net of senior debt of $665m (December 2011 $705m). Property includes direct and indirect holdings.

(f) Infrastructure is reported net of senior debt of $206m (December 2011 $208m).

Life Company asset allocation split

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----- Start of picture text ----- 31 March 2012 31 December 20113% 2%18%16%6% 7%75% 73%Property Fixed income Infrastructure Equity and otherand cash assets assets----- End of picture text -----

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----- Start of picture text ----- 30 September 20113%6% 18%73%----- End of picture text -----

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----- Start of picture text ----- 30 June 20113%18%6%73%----- End of picture text -----

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Analysis of Flows
Funds Management
Net fows for the quarter: 31 Mar 12 31 Dec 11 30 Sep 11 30 Jun 11
$m $m $m $m
Boutique Partnerships 614 1,650 336 1,309
Aligned and Other 31 11 (276) (70)
Net fows 645 1,661 60 1,239
Life
Sales for the quarter: 31 Mar 12 31 Dec 11 30 Sep 11 30 Jun 11
$m $m $m $m
Retail 364 475 509 450
Institutional 415 239 49 10
Net sales 779 714 558 460
Reconciliation of Total Group Assets and Funds Under Management
31 Mar 12 31 Dec 11 30 Sep 11 30 Jun 11
$m $m $m $m
Funds under management 29,389 27,721 25,773 23,608
Life investment assets 9,380 8,709 8,747 8,387
Adjustments to remove double counting
of cross holdings:
Life Company investment in CDI and CIF (460) (451) (439) (435)
Life Company investment in infrastructure,property and fxed income mandates(g) (6,897) (6,412) (6,502) (3,651)
Total Assets and Funds Under Management 31,412 29,567 27,579 27,909

(g) The change in cross holdings from 30 June 2011 was due to an increase in fixed income mandates managed by the aligned team on behalf of the Life company.

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