Challenger opens door to Aussie share fund

Challenger has opened its Australian share fund to retail investor in an attempt to capitalise on the success of its top ranking Australian equities team.

Challenger was rated by InTech as the top performing Australian shares manager for the last financial year after its active, style-neutral approach helped it achieve a 23.2 per cent return for the 12 months to June 30 - more than 10 per cent more than the average manager, according to InTech.

Challenger’s director of managed investments Martin Ashe says the Australian share fund, previously available only to institutional investors or through wrap or master trust vehicles, was released to the retail sector following a steady build up of demand prompted by the funds extended record of outperformance.

As at the 30th of September, the Australian share fund has returned 14.6 per cent per annum in the six years since its inception, earning itself a buy, or four-star, rating from research house InvestorWeb.

Challenger head of equities Pano Raftopoulos says the fund managed to continue outperforming its benchmark, despite recent turmoil in international markets, mostly on the back of an overweight position to defensive sectors such as healthcare and infrastructure.

He says now is a good time to invest in Australian shares, despite continuing uncertainty surrounding equity markets around the world.

"While we won’t escape the global slowdown unharmed, Australia should be able to avoid a recession unlike most other industrialised nations. The [fund] will maintain the defensive strategy it put in place in July and August, and focus on high quality companies with solid growth outlooks," he says.

The minimum initial investment in the fund will be $2000, with a minimum for additional investment of $500.