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General Information

Challenger Limited
Other Diversified Financial Services

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$7.15 $7.17 $7.19 $7.12 $7.17 523644 $0.02 ( 0.28% )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation


Company Overview

Business Description
Challenger Limited (CGF) is an investment management firm focusing on providing Australians with financial security in retirement. Challenger operates two core investment businesses, Life division and Funds Management division.
Strategy Analysis
Annuities are in demand by retail investors moving into retirement and CGF is well placed to take advantage of this trend. Changing demographics clearly complement the business model. The two business divisions are aligned to changes in the industry and are well positioned to take advantage of their small positions in a large market that continues to grow. We expect strong long-term demand for lower-risk, lower-cost income stream products, with the industry focus on new products and expanded distribution. CGF´s simplified business model is based on annuity sales from its Life business and Funds Management, with around $40bn of funds and assets under management after selling most of its mortgage management business in late 2009. Management expects further growth in fund flows due to growth of existing boutique managers and investing in new managers over coming years. Challenger reported NPAT of $222.0m for the half-year ended 31 December 2012. The increase in statutory profit reflects a significant improvement in investment experience due to improved global sentiment leading to a contraction in credit spreads. Revenues from ordinary activities were $810.9m, up 21.7% from the same period last year. Diluted EPS was 41.5 cents compared to 3.8 cents last year. Net operating cash flow was $261.0m compared to $400.6m last year. The interim dividend declared was 9.5 cents compared with 7.5 cents last year.

Financial Summary

Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 357.8 61.6 5.2% 11.6 32.0 4.5% 100.0%
2015 F 328.8 58.6 -3.4% 12.2 30.0 4.2% 85.0%
2014 A 328.7 60.7 4.6% 9.8 26.0 4.4% 20.8%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Challenger (CGF) $4,051M 0.0459 -0.0485 0.0820 11.7307 12.3288 11.3942 3.66% 4.18% 4.59%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 1.67 12.40 1.70 12.00
Market 0.89 16.20 1.33 1.33
Sector 1.12 14.10 1.11 1.42


Name Position Start Date
Mr Brian Benari Chief Executive Officer, Managing Director 17/02/2012
Ms Brenda Mary Shanahan Non-Executive Director 01/04/2011
Mr Graham Allan Cubbin Non-Executive Director 06/01/2004
Mr Jonathan Grunzweig Non-Executive Director 06/10/2010
Mr Leon Zwier Non-Executive Director 15/09/2006
Mr Steven Gregg Non-Executive Director 08/10/2012
Ms JoAnne M Stephenson Non-Executive Director 08/10/2012
Mr Peter L Polson Non-Executive Director, Non-Executive Chairman 06/11/2003


Name Position
Paul Rogan Chief Executive, Distribution Product and Marketing
Robert Woods Chief Executive, Funds Management
Richard Howes Chief Executive, Life
Andrew Tobin Chief Financial Officer
Andrew Brown Company Secretary
Michael Vardanega Company Secretary,General Counsel

Substantial Shareholders

Holding Name
32,520,035 (6.13%) Caledonia (Private) Investments Pty Limited & its Associates

Calendar of Events

Date Event
16 February 2016 Report (Interim)
22 September 2015 Report (Annual)
19 August 2015 Report (Prelim)
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