Slide 1: FY18 financial results
FY18 financial results 14 August 2018 challenger é
Slide 2: Overview
Overview Strong business momentum FY18 highlights Strategic progress Brian Benari – Managing Director and Chief Executive Officer Financial results Andrew Tobin – Chief Financial Officer Outlook Brian Benari – Managing Director and Chief Executive Officer FY18 – 30 June 2018 2
Slide 3: Highlights
Highlights Strong business momentum FY18 highlights Earnings underpinned by strong AUM growth Strategic progress Strong business momentum and positioned for future growth Financial results Highly efficient and scalable business with significant cost advantage Outlook Strategy positioning Challenger
Slide 4: FY18 highlights
FY18 highlights Earnings underpinned by strong AUM growth Group Assets Under Management ($bn) Normalised NPBT and NPAT 1 ($m) 547 81.1 Group AUM +16% 505 Normalised NPBT +8% 70.0 467 Life AUM +15% +11% excluding FY17 one-off Life Risk fee 60.1 406 Funds Management FUM +17% 385 362 Normalised NPAT +6
Slide 5: FY18 highlights
FY18 highlights Strong business momentum and positioned for future growth Strong growth across business Highly rated by customers and advisers Group – 16% AUM growth Consumer brand familiarity 57% – 9% above target2 Life – Record book growth of $1.8bn (+37%) Industry leading net promotor score3 FM –
Slide 6: Our vision and strategy
Our vision and strategy A clear plan for sustainable long-term growth FY18 – 30 June 2018 6
Slide 7: Strategic priorities
Strategic priorities Excellent progress executing long-term plan Grow allocation to secure and stable retirement incomes FY18 priority Focus on • Lifetime income streams means test rules finalised – new rules commence 1 July 2019 superannuation reforms • Retirement Income Framework announced – stage
Slide 8: Strategic priorities
Strategic priorities Excellent progress executing long-term plan Be the market leader and partner of choice FY18 priority Leading adviser • Rated leader in retirement incomes by 93% of advisers 1 and consumer 2 ratings • Rated #1 by Wealth Insights across six key categories – including overall advis
Slide 9: Strategic priorities
Strategic priorities Excellent progress executing long-term plan Provide relevant and superior investments for customers FY18 priority Build-out • Japan – real estate licence granted and insourced management of Life’s Japanese portfolio offshore capability • Europe – two new US-based boutiques (Gare
Slide 10: Strategic priorities
Strategic priorities Excellent progress executing long-term plan Sustainable business practices to deliver superior outcomes FY18 priority Employee • Diversity targets achieved and on track to exceed FY20 targets engagement • Women in management roles up 5% to 38% and ahead of target Innovation and
Slide 11: Financial results
Financial results Andrew Tobin Chief Financial Officer
Slide 12: Group result
Group result Highly efficient and scalable business with significant cost advantage 1 Net income ($m) Expenses ($m) Group NPBT and EBIT margin (%) 67.3 66.6 600 +14% 822 67 +8% 66 65.4 547 500 766 505 268 65 400 467 250 256 721 64 300 63 200 62 61 100 60 0 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY1
Slide 13: Group result
Group result Supported by AUM growth with margin reflecting product diversification Normalised NPBT $547m (+8%) Normalised NPBT +8% Normalised NPAT +6% Statutory NPAT -19% • +11% excluding FY17 one-off Life Risk fee (~$10m) 38 17 • Underpinned by strong asset growth (12) (1) 547 505 • Life margin im
Slide 14: Life result
Life result Record book growth Total Life sales ($bn) Life book growth ($bn) Life sales +12% to $5.6bn 1.8 Life book growth $1.8bn (+37%) 5.6 5.0 Annuity sales $4.0bn (unchanged) 15.0% growth in total liabilities 4.3 1.3 Other Life sales $1.6bn (+65%) 1.1 Annuity book growth $1.4bn (+55%) 13.5% grow
Slide 15: Life sales
Life sales Continuing to diversify product offering Life sales $5.6bn (+12%) Life sales ($m) 6,000 Annuity sales $4.0bn (unchanged) 5,000 • Long-term annuity sales1 $1.4bn (-$158m) 4,000 • Term (exc. MS Primary) $2.6bn (+$148m) 3,000 Other Life sales $1.6bn (+65%) 2,000 • Other Life sales comprise 1
Slide 16: Life annuity sales
Life annuity sales Ongoing focus on long-term sales Long-term sales1 $1.4bn (-10%) Annuity sales ($m) 4,500 45% • 36% of total annuity sales 40% 4,000 40% • Lifetime 21% of annuity sales 36% 3,500 35% • Liquid Lifetime $0.5bn 3,000 30% – impacted by means test review 2,500 22% 25% – new rules 1 July
Slide 17: Life annuity maturities
Life annuity maturities Realising benefits from focus on long-term annuities Annuity book shifting to long-term Long-term annuity book and maturity rate2 • Long-term annuities1 now account 50% for 43% of annuity book, up from 40% 43% 21% five years ago 38% 30% 30% 27% Annuity maturity rate reducing
Slide 18: Life book growth
Life book growth Record result – 37% increase in Life book growth Life book growth $1.8bn (up 37%) Life book growth ($m) • 15.0% growth in total liabilities 2,000 1,796 Annuity book growth $1.4bn (up 55%) 1,500 1,313 1,068 • 13.5% growth in annuity liabilities 1,000 651 • Benefiting from 500 • new d
Slide 19: Life revenue
Life revenue Strong growth with margin reflecting product diversification 1 Life cash operating earnings ($m) and COE margin (%) Life liability mix 700 6.00% 100% 6.00% Domestic 11% 10% 13% 15% annuities 4.47% 4.49% 5.00% 2% 5.00% 4.45% 4.46% 7% 4.29% 80% 600 Japanese 3.93% annuities 4.00% 4.47% 4.4
Slide 20: Life investment portfolio
Life investment portfolio Favouring fixed income over property to optimise ROE • Targeting reduction in property Life investment portfolio allocation from 21% (FY18) to 100% mid-teens % 16% 16% 80% 18% 20% 21% 23% 22% 22% • $0.7bn property reduction 20% 19% 21% substantially completed 60% Property r
Slide 21: Life Investment Experience
Life Investment Experience Driven by new business strain and equities and other experience Asset and policy liability experience -$45m (pre-tax) Asset and policy liability experience New business strain (pre-tax) (pre-tax) • Fixed income +$79m -$45m -$59m • Equities and other -$155m 150 • Property +
Slide 22: Life Investment Experience
Life Investment Experience Asset and policy liability investment experience driven by equities & other Fixed • Valuation gain $40m; normalised growth $39m income • Credit spreads contracted ~20 bps +$79m • Credit default experience -6 bps (5 year average -11 bps p.a.) Equities • Valuation loss $80m;
Slide 23: CLC regulatory capital
CLC regulatory capital Strongly capitalised to support growth Regulatory capital Movement in CLC’s excess regulatory capital ($m) Regulatory capital +$519m PCA -$402m • Benefited from MS&AD equity placement 500 10 • Subordinated debt replaced 367 (53) (63) 85 16 PCA (305) (355) 1,266 1,342 1,388 1,4
Slide 24: CLC regulatory capital
CLC regulatory capital Reducing capital intensity – expect to reduce further 1 • 1H18 capital intensity (15.2%) elevated CLC PCA3 to investment assets following MS&AD equity placement 16% 15.2% • 2H18 capital intensity reduced to 15% 14.3% 14.3% 14.1% 14.1%, benefiting from 14% 13.7% 13.7% 13.6% • l
Slide 25: Funds Management result
Funds Management result Strong asset growth and scale benefits driving 28% increase in earnings Net flows1 ($bn) Average FUM ($bn) 6.2 Net flows $5.3bn -15% 73.4 Funds Management +19% 5.3 (8% of opening FUM) 61.8 55.1 Fidante Partners +19% Fidante Partners $3.9bn 2 2.4 (8% of opening FUM) CIP +17% 2
Slide 26: Funds Management investment performance
Funds Management investment performance Strong performance underpinning superior net flows Fidante Partners percentage of funds 1st or 2nd quartile1 Funds Management performance relative to benchmark2 14% 1 year 91% 23% 10% 29% 3 years 89% 86% 86% 71% 71% 69% 59% 5 years 96% 1 year 3 years 5 years 7
Slide 27: Dividends
Dividends Increasing shareholder returns Dividend (cps) Dividend payout ratio1 40 60% 34.5 35.5 32.5 52.1% 30.0 50.3% 50.4% 30 49.0% 26.0 50% 20 40.6% 40% 10 0 30% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Unfranked dividend Normalised dividend payout ratio Franked dividend Normalised divide
Slide 28: Outlook
Outlook Brian Benari Managing Director and Chief Executive Officer
Slide 29: Outlook
Outlook $7.2 trillion Supportive environment with opportunities for future growth Supportive environment 1 1 • $2.6 trillion super system – $0.8 billion in retirement 2 • 4 million Australians over age 65 3 • 42% of retirees on full age pension • Regulation not sufficiently focused on retirement Nex
Slide 30: Outlook
Outlook Strategy positioning Challenger for next growth phase Grow allocation to secure and Be the market leader and partner stable retirement incomes of choice 1 • Maintain No.1 retirement income brand • Go live on BT platform and work with HUB24 • Launch new lifetime products • Partner with super
Slide 31: Outlook
Outlook Delivering on strategy for growth FY19 profit guidance Normalised NPBT growth between 8% and 12% Includes Life’s reallocation from property to fixed income Return on equity 1 Target 18% ROE Expect FY19 ROE to increase but not reach 18% target Capital Remain strongly capitalised Capital inten
Slide 32: Highlights
Highlights Strong business momentum FY18 highlights Earnings underpinned by strong AUM growth Strategic progress Strong business momentum and positioned for future growth Financial results Highly efficient and scalable business with significant cost advantage Outlook Strategy positioning Challenger
Slide 33: Appendix
Appendix Additional background information
Slide 34: Our vision and strategy
Our vision and strategy A clear plan for sustainable long-term growth FY18 – 30 June 2018 34
Slide 35: Business overview
Business overview Two core businesses benefiting from superannuation system growth Challenger Limited (ASX:CGF) Life Funds Management #1 market share in annuities1 One of the fastest growing active fund managers2 Life Fidante Partners Leading provider of annuities and guaranteed Co-owned, separately
Slide 36: Australian superannuation system overview
Appendix Australian superannuation system overview
Slide 37: Australian superannuation system
Australian superannuation system Attractive market with long-term structural drivers High growth market supported by Australian superannuation growth4 ($bn) 8,000 • Mandatory and increasing contributions • Earnings compounding 6,000 • Population growth and ageing demographics 4,000 Resulting in 1 •
Slide 38: Australian superannuation system
Australian superannuation system Attractive market with long-term structural drivers Pre-retirement (super savings) phase Projected superannuation assets2 ($bn) 7,500 • Funds Management target market • Supported by mandated and increasing contributions 5,000 Post-retirement (super spending) phase •
Slide 39: Australian superannuation system
Australian superannuation system Attractive market with long-term structural drivers Mandatory and increasing contributions 1 • Increasing from 9.5% to 12.0% Superannuation Guarantee contribution rate1 1992 1997 2002 2015 2021 2022 2023 2024 2025 3.0% 6.0% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% Dem
Slide 40: Australian superannuation system
Australian superannuation system High allocation to equities and low allocation to fixed income Australia has low fixed income and high equity allocations1 22% 26% 30% 37% 42% 46% 50% 51% 61% 11% 59% 63% Other 12% Equities 16% 51% 37% Cash and deposits 7% 22% 9% Fixed income (bills and bonds) 31% 23
Slide 41: Post-retirement phase of superannuation
Post-retirement phase of superannuation High growth market with structural drivers Super funds partnering with Life companies Over 700 Australians turning 65 every day Industry moving ahead of regulation Older and healthier 20-year cycle of retiring ‘Baby-Boomers’ Market Natural market growth retire
Slide 42: Post-retirement phase of superannuation
Post-retirement phase of superannuation Australians now have meaningful balances in retirement • Superannuation guarantee system 10 largest super funds – average retiree member balance2 ($’000) not fully mature – established 26 Unisuper 480k years ago Qsuper 359k • Operating for only half the Austra
Slide 43: Post-retirement phase of superannuation
Post-retirement phase of superannuation Superannuation starting to reduce reliance on age pension • Average household wealth at retirement Portion of retirees reliant on age pension2 1 now $350k to $500k range 30% • Age pension subject to asset and income tests 44% 42% • 2.5m Australians receiving s
Slide 44: Government enhancing post-retirement phase
Government enhancing post-retirement phase Retirement Income Framework The retirement phase of the superannuation system is currently under-developed. There is limited availability and take-up of products that manage the risks people face in retirement, in particular the risk of outliving their savi
Slide 45: Government enhancing post-retirement phase
Government enhancing post-retirement phase New retirement product rules from 1 July 2017 • Enables new lifetime products, Benefits of pooling (illustrative DLA example with 15 year deferral period) including Deferred Lifetime Annuities (DLAs) 100% 1 • Provide building block for CIPRs 80% Deferral pe
Slide 46: Government enhancing post-retirement phase
Government enhancing post-retirement phase Retirement Income Covenant 1 • Retirement Income Covenant proposed for SIS Act • Trustee required to develop member retirement income strategy • maximise income for life • manage risks that affect stability of income • provide access to capital 2 • CIPRs a
Slide 47: Government enhancing post-retirement phase
Government enhancing post-retirement phase New means test for lifetime income products from 1 July 2019 • New rules take effect 1 July 2019 These new rules will provide • existing rules to apply until then industry with the confidence • means test of lifetime products and stability to develop purcha
Slide 48: CIPR-style strategies already being implemented
Government enhancing post-retirement phase CIPR-style strategies already being implemented 2 1 Comparing products – Actual ÷ Desired Income • CIPR -style strategies already being implemented by dealer groups and super funds • Retirement income models emerging Partial Annuitisation improves • typical
Slide 49: Retirement strategies
Retirement strategies Retiree needs addressed through combining products Discretionary (wants) Funds Management Account Equities, fixed income Based and alternative asset Pension products (ABP) Life Essential Guaranteed Annuity and income stream guaranteed income (needs) products 1 Full age pension
Slide 50: Overview of age pension system
Overview of age pension system Social safety net for those unable to support themselves • Qualification age 65.5 Maximum age Per fortnight Per annum (increasing to age 67) Single $907.60 $23,597 pension rates1 Couple $1,368.20 $35,573 • Age pension based on lower outcome under Asset test Income test
Slide 51: New means test for lifetime income products
Government enhancing post-retirement phase New means test for lifetime income products from 1 July 2019 Asset pension test Income pension test Example - $100,000 lifetime income stream purchase price at aged 65 Example - $100,000 lifetime income stream paying $7,000 per year 100,000 7,500 7,000 Annu
Slide 52: Retirement strategies – combined products
Retirement strategies – combined products Enhances income and provides longevity and inflation protection Case study Jenny and John • Homeowning couple • $500,000 of super (in addition to family home) • 65 years old • Approaching retirement • Target income $58,000 p.a. 1 • Status quo 100% ABP • Comb
Slide 53: Retirement strategies – combined products
Retirement strategies – combined products Enhances income and provides longevity and inflation protection Case study – Jenny and John 100% Account Based Pension (ABP) Combined product (70% Account Based Pension; 30% Lifetime Annuity) Income Income Age Spouse1 Age Spouse1 Age Spouse 2 Age Spouse 2 Ag
Slide 54: Retirement strategies – combined products
Retirement strategies – combined products Enhances income and provides longevity and inflation protection Combined product (70% Account Based Pension; 30% Lifetime Annuity) Income Combined product income enhanced through 1. mortality credits 2. interaction with age pension 3. growth assets left to g
Slide 55: Retirement strategies – combined products
Retirement strategies – combined products Enhances income and provides longevity and inflation protection Case study Income Elizabeth • Single homeowner • $350,000 of super (in addition to home) • 65 years old • Approaching retirement • Target income $39,000 p.a. • Status quo 100% ABP • Combined pro
Slide 56: Life – Distribution, Product and Marketing (DPM)
Appendix Life – Distribution, Product and Marketing (DPM)
Slide 57: Distribution
Distribution A competitive advantage driving long-term growth Influencing Annuities on platform and market Research Technology retirement calculators improving practice retirement outcomes Retirement Adviser Product Meeting goals education and practice support innovation and managing risks managemen
Slide 58: Distribution – New relationships
Distribution – New relationships 1 Industry moving ahead of regulation – using annuities to build CIPRs 2016 2017 2018 / 2019 ClearView Wealth Solutions Australia’s largest retail platform offering platform offering Challenger annuities Challenger annuities Challenger annuities via Suncorp branded a
Slide 59: Distribution – New relationships
Distribution – New relationships Platforms broadening access to Challenger annuities Platform relationships Platform relationships Provides access to ~1/3rd of super industry FUM1,2 Provides access to ~2/3rd’s of financial advisers3,4 Launched September 2017 Targeting launch in 5% September 2018 qua
Slide 60: Colonial First State (CFS) relationship
Colonial First State (CFS) relationship Annuities on platform case study 1 Ernst & Young stochastic model 1 Comparing products – Actual ÷ Desired Income • To determine better outcomes for clients • combining lifetime annuity with account based pension often provides superior outcomes CFS retirement
Slide 61: AMP relationship
AMP relationship Annuities on platform case study • Annuities available via AMP’s adviser portal • Supported by Challenger retirement tools and calculators AMP annuities on platform 1 • >50% of sales Lifetime annuities 2 • ~40% of writers new to Challenger • ~30% of AMP advisers are using Challenger
Slide 62: Income that lasts a lifetime – a key CIPR objective
What retirees want Income that lasts a lifetime − a key CIPR objective 1 2 National Seniors Social Survey 2018 Retirement planning and investments are a major consideration for Australians over 50. The impact of the Global Financial Crisis (GFC) still lingers. Retirees are looking for income that la
Slide 63: MS&AD strategic relationship
MS&AD strategic relationship Broadening relationship and funding future growth Strategic relationship with MS&AD Group 41,295 employees • Increases access to Japanese market through MS&AD ~A$24bn market cap Total assets ~A$275bn 5 business domains • Opportunities for both Challenger and MS&AD (as at
Slide 64: MS Primary annuity relationship
MS Primary annuity relationship Partnering with leading provider of AUD annuities in Japan MS Primary Product overview • MS&AD subsidiary 20 year term annuity • leading provider of foreign currency life products • Australian dollar single premium product • Whole-of life product with annuity payment
Slide 65: Life product overview
Life product overview Providing customers with guaranteed income Fixed term Lifetime Other (long term annuities) 48% of total book 37% of total book 15% of total book Provides regular guaranteed Provides guaranteed regular Institutional product providing payments for a fixed rate, fixed term payment
Slide 66: Brand strength
Brand strength Strong consumer and adviser brand Brand Strength1,2,3 2011 100% ‘Real Stories’ 95% 93% 80% 89% 85% 60% 60% 56% 50% 40% 20% 2013 ‘On 13% Paper’ 2011 2013 2015 2017 Consumers Advisers 2016 ‘Prompted ‘Leaders in ‘Lifestyle brand retirement Expectancy’ awareness’ income’ FY18 – 30 June 20
Slide 67: Clear leader in retirement incomes
Clear leader in retirement incomes Challenger rated #1 in overall adviser satisfaction Challenger adviser satisfaction1 Wealth Insights net promoter score1 Challenger +54% 10.0 8.0 6.0 +’ve net promotor score Peers include 4.0 Australia’s top 20 - ’ve net promotor score fund managers 2.0 0.0 Challen
Slide 68: Appendix Life — Financials
Appendix Life —- Financials challenger {3
Slide 69: Life
Life Sales and AUM benefiting from diversity of products and distribution Total Life sales ($m) Life AUM ($bn) 18,085 12% CAGR over 5 years 11% CAGR over 5 years 15,677 14,112 1,555 12,795 941 11,087 999 4,011 4,001 944 582 3,351 2,799 2,753 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Annuity
Slide 70: Life investment portfolio
Life investment portfolio High quality portfolio providing reliable income Life investment portfolio1 Life investment portfolio – last 10 years Unlisted 100% infrastructure Listed Alternatives and non- infrastructure 80% beta equities Beta equities Investment grade fixed 60% Offshore property 4% inc
Slide 71: Life investment portfolio
Life investment portfolio Fixed income 65% of portfolio Fixed income portfolio1 Fixed income portfolio by industry1 Non-IG Corporate Credit Liquids 15% 14% Government 100% Banks, Financials & Insurance 90% 25% Non-IG Asset Residential Property 88% Backed Securities Infrastrucuture & Utilities 81% 10
Slide 72: Life investment portfolio
Life investment portfolio Property 21% of portfolio Property portfolio1 Life’s property portfolio Offshore other Japanese retail 1% • 52% of tenants investment grade 8% Australian other 4% • Australian Government is a major tenant 2 9% • representing 32% of rental income Australian REITs 6% • Averag
Slide 73: Life investment portfolio
Life investment portfolio Equities and other & infrastructure 14% of portfolio Equity portfolio1 Infrastructure portfolio1 Domestic beta 7% Unlisted other Offshore alternatives 15% 42% Offshore beta 42% 34% Unlisted logistics Listed core 18% infrastructure 48% 44% $1.8bn $0.7bn 52% 66% Unlisted rene
Slide 74: Normalised profit framework
Normalised profit framework Reflects underlying performance of Life business Investment Experience Cumulative Investment Experience ($m) Asset and policyholder liability valuation 300 movements plus net new business strain 200 100 0 Asset and policy liability experience (100) Difference between expe
Slide 75: Normalised profit framework
Normalised profit framework Credit default loss history • Normalised growth assumptions Credit default loss history (bps) includes -35 bps for fixed income 10 5 • Normalised assumption represents 0 allowance for credit default losses -5 • FY18 -6 bps -10 -15 • Five year average -11 bps p.a. -20 -25
Slide 76: Asset allocation framework
Asset allocation framework Consistently applied with strong risk management Asset and Liability matching Risk management • Fundamental principle – assets Asset and • Strong governance framework and liabilities cash flow matched liability matching • Risk management entrenched • Managed by dedicated t
Slide 77: Asset and liability matching
Asset and liability matching Unwanted risks mitigated with assets and liabilities cash flow matched Asset and liability cash flow matching ($m) – June 2018 • Assets deliver contracted cash flows to match contracted liabilities 7,000 6,000 • Risk appetite seeks to minimise 5,000 duration mismatch 4,0
Slide 78: Appendix Funds Management
Appendix Funds Management challenger {3
Slide 79: Funds Management
Funds Management Strong FUM growth track record • Fidante Partners Funds Under Management (FUM) ($bn) 14% over 5 years • 16 boutique brands 78.0 • located in Australia, UK and US 66.9 57.9 • asset class diversification 56.7 • replicating model in Europe 47.1 • Challenger Investment Partners (CIP) •
Slide 80: Fidante Partners
Fidante Partners Contemporary model with strong alignment of interests Administration services Distribution services • Investment operations • Asset consultant & research • Client operations Investment • Strategic positioning • Risk and compliance Management • Product development • IT infrastructure
Slide 81: Fidante Partners – expanding capability
Fidante Partners – expanding capability Adding new managers, strategies and building geographic footprint Fidante Partners FUM growth ($bn) 60 Boutiques formed pre-Dec 2010 50 1 Boutique sale 40 30 20 10 0 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun
Slide 82: Funds Management – multiple brands and strategies
Funds Management – multiple brands and strategies Scalable and diversified ~$78bn of FUM Equities $26.3bn1 Multiple brands & strategies Alternatives $14.3bn1 Fixed Income $37.4bn1 FY18 – 30 June 2018 1. Funds Under Management (FUM) as at 30 June 2018. 82
Slide 83: Fidante Partners boutique managers
Fidante Partners boutique managers Diversified managers and investment strategies Partnership Partnership Boutique Asset class Boutique Asset class commenced commenced Aug 2010 Australian equities Mar 2017 Australian small cap equities Nov 2008 Australian fixed income May 2010 Australian equities (i
Slide 84: Fidante Partners performance advantage
Fidante Partners performance advantage Model supports superior performance • Outperformance across all periods Outperformance of Australian boutique managers 1 3% • Our boutiques • enjoy investment autonomy 2% • are high conviction investors • take more active exposures • have generated consistent a
Slide 85: Funds Management investment performance
Funds Management investment performance Strong performance underpinning superior net flows 1 2 Fidante Partners percentage of funds 1st or 2nd quartile Funds Management performance relative to benchmark 14% 1 year 91% 23% 10% 29% 3 years 89% 86% 86% 71% 71% 69% 59% 5 years 96% 1 year 3 years 5 years
Slide 86: Funds Management
Funds Management Growth supported by available capacity and superior flows Manager capacity ($bn) Quarterly net flows vs peers1 ($bn) 30 5.0 25 4.0 20 3.0 15 2.0 10 1.0 0.0 5 -1.0 0 Equity Fixed income Alternatives managers managers managers Available capacity Challenger Funds Management FUM Peer av
Slide 87: Challenger Investment Partners (CIP)
Challenger Investment Partners (CIP) Proven long-term investment track record and capability 1 • $18 billion of FUM • Investment manager for Challenger Life and 3rd party institutions • Clients benefit from experience and market insights through breadth and scale of mandates Trusted partner Asset sp
Slide 88: Important note
Important note The material in this presentation is general background information about Challenger Limited activities and is current This document may contain certain ‘forward-looking statements’. The words ‘forecast’, ‘expect’, ‘guidance’, ‘intend’, at the date of this presentation. It is informat