Mixed quarter for Challenger Financial
Challenger Financial Services Group has reported a mixed result for the March quarter with assets and mortgages under management declining by 5.5 per cent while assets under administration and advice rose 2.8 per cent to total $72.8 billion.
The company told the Australian Securities Exchange today that mortgages under management totalled $18.9 billion at March 31, with residential mortgages under management falling 4.4 per cent for the quarter reflecting subdued credit growth.
It said that during the past two quarters, Challenger had placed $1.9 billion of term residential mortgage-backed securities, but that book growth continued to be managed prudently against a constrained volume outlook in residential mortgage-backed securities markets.
The Challenger announcement said that funds under management had decreased to $15.5 billion during the quarter, with market performance down 2.9 per cent compared to a reduction in the ASX 200 of 3.8 per cent.
It said that strong performance from its Boutique Partnership funds had led to a number of new institutional accounts being awarded that were expected to fund in the June quarter.
AUTHOR
Mike Taylor
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