Investment
Challenger flags new Fidante partnership, record profit

In its 2018 first-half results, Challenger highlighted a new European boutique partnership for subsidiary Fidante Partners along with record normalised profit.

Challenger explained that Fidante Europe has formed a partnership with US-based specialist equity manager Garelick Capital Partners. Overall, Challenger's investment arm (which also includes Challenger Investment Partners) boosted net flows by 22% to $3.9 billion in the half-year.

More broadly, Challenger saw its normalised net profit rise by 6% to $275 million. This was driven by growth in assets under management (up 18% to $76.5 billion) and life sales (up 21% to $3.3 billion).

The 20-year maturity with Mitsui Sumitomo Primary Life Insurance Company, announced in 2016, accounted for 17% of 2018 first-half life sales.
Challenger chief executive Brian Benari said the results reflected the "benefits from diversifying our distribution channels and product offering, which is driving increased sales."

"At the same time, we are reweighting to longer-term business, which is reducing the proportion of annuities reaching maturity and maximising our return to shareholders. This is underpinning our future growth," Benari said.

Challenger chair Peter Polson added: "We continue to focus on managing costs and remain one of the most efficient financial services companies. For the first half we achieved our lowest ever cost to income ratio, whilst also investing to capture new distribution opportunities."

Read more: ChallengerFidante PartnersBrian BenariFidante EuropeGarelick Capital PartnersMitsui SumitomoPeter Polsoninvestment managementretirement income
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