Challenger FUM surges forward
The Challenger Financial Services Group’s funds under management, administration and advice surged to $46.4 billion in 2006, according to a recent quarterly announcement.
Funds under management increased by $1.8 billion for the quarter to close at $15.5 billion, and $3.5 billion for the 12 months to December 31, 2006.
Assets under management for the group’s asset management division increased by $790 billion to $4.4 billion (22 per cent), underpinned by the launch of the Challenger Diversified Property Group (CDI).
Growth within this division was partially attributed to changes in CDI’s asset allocation, which saw a decreased exposure to property (from 48 per cent to 28 per cent), a slight decrease in infrastructure (from 21 per cent to 17 per cent) and an increase in fixed interest exposure (from 28 per cent to 52 per cent).
According to Challenger, the significant change in fixed interest asset allocation was reflective of increased liquidity from the listing of CDI, the sale of the Challenger Infrastructure Fund units and the issuance of a $190 million subordinated debt.
Challenger also reported that its asset management business made annuity sales of $84 million over the quarter to December 31, 2006.
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