Challenger’sAustralian share and socially responsible investment (SRI) capabilities have been assessed as strong by research houseAssirtin the latest review of the funds management outfit, released today.
Challenger also received a rating of strong for its business management, while it was marked as ‘competent’ in the management of Australian small cap shares, cash and in its operating capability.
All of Challenger’s Australian equity and SRI products received four stars from the research house, while cash management trusts scored a three star rating.
Despite the strong rating for its Australian share management, Challenger’s investment team were described as having room to improve in team dynamics, and that “the current team dynamics may prove counterproductive”, given the team based approach to stock scoring, the report says.
Meanwhile, Challenger’s SRI equities process was described by Assirt as having a “long and demonstratable history of successfully managing ethical mandates”.
The management of small caps by Challenger was let down in the research house’s eyes by the lack of documentation of the group’s research process, while the short term record of the group’s cash sector management team was also picked out by Assirt.
On the question of market share, Assirt says Challenger’s slice is relatively small, but that the group has pursued an aggressive phase of expansion and strategic acquisitions and continued product development. However, Assirt notes this phase is coming to an end as the group shifts its focus onto marketing its existing products more effectively, which the research house welcomes as a good move.
