Challenger Limited [ASX:CGF] share price has decreased by 1.94%.
December last year their shares traded at $14.00. Now they’ve dropped down to $12.13, and have been decreasing since the climax of 2017.
Challenger Limited is a public investment manager which provides retirement services to its clients. The firm often invests into the public equity markets.
Founded in 1985, Challenger Limited is based in Australia as well as Asia and the United Kingdom.
Challenger is still going strong even after constant decreases
Challenger depends heavily on the growth of asset prices, so they can outperform the returns on annuities.
If they can’t outperform then they will begin to lose money over time.
Ultimately, their assets can go down at any time.
However, Challenger is still the market leader in retirement incomes, as they hold 68% annuity market share.
Their brand awareness has vastly increased. According to the company’s first half report, it went from 85% in December 2016 to 89% in December 2017.
Pushing for growth
Despite decreasing in share value, Challenger has gone through some positive growth.
Their first half results states that life sales of $3.3 billion have gone up 21%.
Group assets under management of $76.5 billion has also grown by 18%
In Challenger’s first half report CEO Brian Benari stated:
‘In these results we are seeing 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.’
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