AI assistant
CHALLENGER LIMITED Interim / Quarterly Report 2006
64641_rns_2006-04-30_529c1f76-fff2-420c-a79c-fcada13cba04.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
MARKET RELEASE
ASSETS & LOANS UNDER MANAGEMENT / ADMINISTRATION 31 MARCH 2006
1 May 2006, Sydney - Challenger Financial Services Group Limited (CGF) today announced that at 31 March 2006 its assets and loans under management/administration totalled \$35.3 billion (31 December 2005 \$34.2 billion).
Funds under management in managed investments increased during the quarter to \$12.5 billion (31 December 2005 \$11.9 billion) up 5 per cent in the quarter. Growth in Challenger's core managed funds in the quarter (after adjustment for property syndicates) was 8.6 per cent which is up on the 7.2 per cent growth in the December quarter.
Challenger's mortgage loan book totalled \$20.1 billion at 31 March 2006 (31 December 2005 \$19.7 billion) driven by \$461 million net growth in the residential loan book.
Annuity sales for the quarter ended 31 March 2006 were \$66 million (\$78 million for the December quarter). Annuity sales are expected to reach \$300 million in the current year.
FNDS
Assets and loans under management/administration
as at 31 March 2006
| a a a chinn anns an an an an an an an an an an an an an | 31 Mar 06 | 31 Dec 05 | 30 Sep 05 |
|---|---|---|---|
| \$m | \$m | \$m | |
| Total Group Assets under Management or Administration | 35,342 | 34,2421 | 68)(085) |
| Represented by: | |||
| Challenger Wealth Management | |||
| Managed investments where Challenger acts as Responsible Entity, Approved Trustee or Investment Mandate Manager | |||
| (includes 5Di funds, Custom Choice funds and market linked life policies) (interfunding eliminated) | |||
| Market linked funds | |||
| Australian equities funds/mandates | 4.055 | 3,526 | 3,312 |
| International equities funds | 296 | 273 | 236 |
| Direct property (via syndicates) | 61 | 109 | 224 |
| Real estate securities (including hybrid property) funds/mandates | 2,431 | 2,417 | 2,288 |
| Fixed interest funds | 1,626 | 1.476 | 1,309 |
| Multi sector funds | 515 | 519 | 515 |
| Total market linked funds under management Other funds |
8,984 | 8,320 | 7,884 |
| Cash funds | 64 | 155 | 53 |
| Mortgage funds | 3,475 | 3,468 | 3,381 |
| Total other funds under management | 3,539 | 3,623 | 3,434 |
| Total funds under management | ${2,5,2}$ | 114943 | 11,318 |
| Comprising: Retail funds |
8,380 | ||
| Institutional funds | 4,143 | 8,030 3,913 |
7,734 3,584 |
| 12,523 | 11,943 | 11,318 | |
| Funds under administration | |||
| Synergy mastertrust | 1,829 | 1,728 | 1,691 |
| Galaxy wrap | 111 | 105 | 101 |
| Total funds under administration | 1,940 | 1,833 | 1,792 |
| Total funds under management/administration - Wealth Management | 14,463 | 12,776 | 13,110 |
| Challenger Wholesale Finance | |||
| Mortgage loan book | |||
| Commercial lending | 2,475 | 2,516 | 2,457 |
| Residential lending | 17,651 | 17,190 | 16,607 |
| Total loans under management - Wholesale Finance | 20,126 | 19,706 | 19,064 |
| Challenger Life Annuities |
|||
| Property ® | 1,377 | 1,422 | 1,340 |
| Fixed interest, including hybrids | 940 | 901 | 891 |
| Infrastructure assets (including Life's investment in CIFCA) ® | 304 | 301 | 229 |
| Cash & other assets | 486 | 491 | 525 |
| Total assets managed by the Life company | 3,107 | 3,115 | 2,985 |
| Comprising: | |||
| Shareholder interests | 371 | 363 | $\sim$ 73 |
| Policyholder interests | 2,736 | 2,752 | 2,912 |
| Specialised Funds | |||
| Challenger Wine Trust (ASX:CWT) (gross assets) | 301 | 298 | 290 |
| Challenger Infrastructure Fund (ASX:CIFCA) (adjusted equity value) | 320 | 378 | 327 |
| Total specialised funds under management | 624 | 676 | 6197 |
| Total assets under management -- Life | |||
| 8728 | 3,791 | 3,602 | |
| 3 Property is reported net of \$293m senior debt (\$357m at 31.0ec.05) 3 San AS value has hope ractated to ovclude the effect of hedditer and to |
Life asset allocation split
Analysis of Flows
Challenger Wealth Management Funds under management
| 31 Mar 06 \$m |
31 Dec 05 \$m |
30 Sep 05 \$m |
|
|---|---|---|---|
| Funds under management net flows for the quarter comprise: | |||
| Retail funds | 180 | 315 | 284 |
| Institutional funds | 12 | 135 | 254 |
| Net inflows | 192 | 450 | 538 |
| The transfer of management rights for one property syndicate during the quarter resulted in FUM exiting of \$49m - this has been excluded from the figures above. |
|||
| Challenger Life | |||
| Annuity sales | 66 | 78 | 76 |
| Reconciliation of Total Group Assets under Management or Administration | |||
| Wealth Management funds under management | 12,523 | 11,943 | 11,318 |
| Wealth Management funds under administration | 1.940 | 1,833 | 1,792 |
| Wholesale Finance loans under management | 20,126 | 19,706 | 19,064 |
| Investments and annuities for and on behalf of annuitants and policy holders | 3.107 | 3.115 | 2,985 |
| Specialised funds under management | 621 | 676 | 617 |
| Total assets and loans before adjustments | 38,317 | 37,273 | 35,776 |
| Adjustments: | |||
| Commercial lending loans - adjustment made to avoid double-counting of mortgages | |||
| held in the Challenger Howard Mortgage Fund | (2,475) | (2,516) | (2,457) |
| Life shareholder interests | (371) | (363) | (73) |
| Life policyholder investment in CIFCA (adjusted equity value) | (129) | (152) | (163) |
| Total Group assets under management/administration | 35322 | 34/242 | 33,033 |
| 1 Reconciliation of restated prior periods: | |||
| Life assets backing market linked policies | (80) | (86) | |
| Life payables and provisions excluded | (18) | (10) | |
| Life shareholder interests net of CIFCA holding eliminated | 311 | 73 | |
| Total Group assets under management/administration reported in prior periods | 35,342 | 34,455 | 33,060 |
Restatement to prior period disclosures is required to ensure consistency with March 2006 presentation of information due principally to excluding Life shareholder interests.