FY13 Financial results 2013 a pivotal year 19 August 2013 Full - - PowerPoint PPT Presentation
FY13 Financial results 2013 a pivotal year 19 August 2013 Full year 30 June 2013 Outline Operating performance Brian Benari Managing Director & CEO Performance scorecards Financial results Andrew Tobin Chief Financial Officer
Full year 30 June 2013
19 August 2013
2
Brian Benari Managing Director & CEO
Andrew Tobin Chief Financial Officer
Brian Benari Managing Director & CEO
Full year 30 June 2013
3
Strong business metrics delivered
Benefiting from long term sales
Scale driving earnings growth
Leader in retirement incomes delivering on shareholder promises
Executing our plan in attractive markets
Full year 30 June 2013 > Highlights
4
Full year 30 June 2013 > Operating performance
(segment information) in the Challenger Limited 30 June 2013 full year financial report.
1 up 4% to $309m
5
Full year 30 June 2013 > Scorecard
Operating environment
Sales mix and asset allocation
.
Life margins
1
4.0% 4.5% 5.0% FY12 FY13 FY14 guidance
Life COE margin (%)
40 80 120 160 200 1H12 2H12 1H13 2H13
Lifetime annuity sales ($m)
6
Full year 30 June 2013 > Scorecard
Operating environment
1 up from 19th 2 years ago
Fidante Partners
.
Aligned Investments
Aligned Investments FUM composition
3rd party clients Challenger Life 2,000 4,000 6,000 8,000 2013 2015 2017 2019 2021 2023 2025 2027 2029
Superannuation assets forecast
2 ($bn)
Post-retirement assets Pre-retirement assets
7
20% 40% 60% 80% 100%
Brand recognition - top 5 in retirement incomes
2
Challenger Peers
Full year 30 June 2013 > Scorecard
Distribution
1
Product
.
Marketing
2
8
Full year 30 June 2013 > Scorecard
Performance metrics
1 up 41% and EPS 1 up 50%
Capital
.
2 and Group cash of $1.1bn
Shareholder returns
for last 5 years
0.750 1.000 1.250 1.500 FY09 FY10 FY11 FY12 FY13
EPS growth
CGF Major Banks Wealth Managers Other Banks 400 800 1,200 FY09 FY10 FY11 FY12 FY13
Excess capital and Group cash ($m)
LAGIC transition balance CLC excess capital and Group cash 50% 100% 150% 200% 20 40 60 80 FY09 FY10 FY11 FY12 FY13
Dividend and share buy back
3
Cents per share Combined payout ratio (RHS)
Full year 30 June 2013 > Financial results
Andrew Tobin
Chief Financial Officer 19 August 2013
10
32% 34% 36% 38% 200 400 600 FY11 FY12 FY13 $m Total net income Expenses Normalised NPAT Cost to income ratio (RHS) 10 20 30 40 50 FY11 FY12 FY13 $bn AUM - average AUM - spot
Full year 30 June 2013 > Financial results
Assets Under Management Financial performance
Financial performance FY13 FY12 Change Trend Assets Under Management $44.8bn $33.4bn 34% Net income $557m $528m 5% Expenses $192m $189m 2% Normalised EBIT
1
$365m $338m 8% Normalised NPAT
1
$309m $297m 4% Normalised cost to income ratio 34.4% 35.9% 150 bps Normalised RoE
2
16.8% 18.8% 200 bps EPS (normalised basic) - cps 58.6 57.5 2% Statutory NPAT $417m $149m large EPS (statutory basic) – cps 79.2 28.8 large
11
2 4 6 8 10 12 FY11 FY12 FY13 $bn AUM - average AUM - spot 10% 20% 30% 100 200 300 400 500 FY11 FY12 FY13 $m Normalised COE Expenses Normalised RoE (pre tax) (RHS)
Full year 30 June 2013 > Financial results
Assets Under Management Financial performance
Financial performance FY13 FY12 Change Trend AUM (average) $10.2bn $9.0bn 13% Retail annuity net book growth $598m $583m 3% Normalised Cash Operating Earnings (COE) $452m $436m 4% Expenses $70m $68m 3% Normalised EBIT1 $382m $368m 4% Normalised RoE (pre tax)2 21.7% 23.9% 220 bps Investment Experience (post tax) $100m ($148m) large
12
4.5% 4.9% (0.3%) 0.2% (0.2%) (0.1%) 4.5% 1.00% 2.00% 3.00% 4.00% 5.00% FY12 COE margin Change in product margin Shareholder return (higher capital) Shareholder return (lower interest rates) Lower normalised growth FY13 COE margin FY14e COE margin Product margin Investment yield - shareholders' funds Normalised capital growth 3.6% (0.7%) (0.1%) (0.1%) 0.6% 3.3% 1.00% 2.00% 3.00% 4.00% FY12 product margin Lower fixed income & property yields NIM run-off Lower infrastructure distributions Lower product funding costs FY13 product margin
FY13 Life COE margin of 4.5%
– product margin (-30 bps) – lower return on assets backing annuities, including lower infrastructure distributions (CIF) and NIM run-off, offset by lower annuity funding costs – return on shareholder capital (unchanged) – higher shareholder capital, offset by lower interest rates – normalised capital growth (-10 bps) due to increased fixed income allocation
FY14 Life COE guidance
1 - unchanged
from FY13
Full year 30 June 2013 > Financial results
FY13 change in product margin FY13 change in Life COE margin
13
20 40 60 80 100 1H12 2H12 1H13 2H13 $m Liquid Lifetime Care Annuity 2 3 4 5 6 7 2,000 4,000 6,000 8,000 10,000 FY11 FY12 FY13 years $m Liquid Lifetime and Care Annuity Term 4+ years Term 1-3 years New business tenor (RHS)
Full year 30 June 2013 > Financial results
Retail annuity sales
business
– Liquid Lifetime ($158m) - up 250% – Care Annuity ($99m) - launched July 2013 – Lifetime annuity sales represent 12% of FY13 total retail sales, up from 2% in FY12
Tenor
from 5.4 years in FY12
value
– Life COE margin enhanced through illiquidity premium – earning margin for longer term
Lifetime annuity sales Life – tenor value
Tenor value represents face value of policy sales multiplied by policy tenor
14
468 583 598 (800) (600) (400) (200)
400 600 800 1,000 (2,000) (1,500) (1,000) (500)
1,000 1,500 2,000 2,500 FY11 FY12 FY13 $m $m Capital outflows High Yield Fund conversion Capital inflows (sales) Net book growth (RHS)
Retail
to grow by 8% (~$570m), excluding maturity of High Yield Fund annuity
1
Institutional
expected in September 2013 quarter
to be reinvested
Full year 30 June 2013 > Financial results
Life retail net book growth
2
15
Full year 30 June 2013 > Financial results
– 84% investment grade – 79% externally rated
within sector, geographies and rating limits
portfolio
– 72% of tenants are government – 90% of leases have fixed rate or CPI increases
cash flows
– annuity maturity profile – relative value
increase as lifetime sales continue to grow
Life investment portfolio - $10.8bn
Fixed income and cash Property Infrastructure Equities and other 20% 40% 60% 80% 31 December 2012 30 June 2013
16
100 200 300 400 500 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 bps
Full year 30 June 2013 > Financial results
normalised growth of $36m, resulting in Investment Experience of $138m
– Australian iTraxx index reduced by ~46 bps
normalised growth assumptions
expense assumptions, and new business mark to market
Investment Experience (pre tax) Australian iTraxx index
(50)
100 150 200 Fixed income Property Infrastructure Equity Actuarial assumptions $m FY13 actual capital growth Normalised capital growth Investment Experience
FY13
17
Full year 30 June 2013 > Financial results
Financial performance FY13 FY12 Change Trend FUM (average) $35.9bn $27.7bn 30% Net flows $7.0bn $4.2bn 67% Fidante Partners net income $48m $32m 50% Aligned Investments net income $52m $51m 2% Expenses $65m $62m 5% Normalised EBIT $34m $21m 62% Normalised RoE (pre tax)1 26.4% 17.0% 940 bps FUM Financial performance
10 20 30 40 50 FY11 FY12 FY13 $bn FUM - average FUM - spot 5% 15% 25% FY11 FY12 FY13 20 40 60 80 100 $m Fidante net income Aligned net income Expenses Normalised RoE (pre tax) (RHS)
18
Full year 30 June 2013 > Financial results
Fidante partners – net income and margin Aligned Investments - net income composition and margin
20 40 60 20 40 60 FY11 FY12 FY13 bps $m Fidante Partners net income Fidante Partners Boutiques' - income margin (RHS) Fidante Partners - income margin (RHS)
Fidante Partners
from FY12
– benefit from higher performance fees – offset by changes in FUM composition
Aligned Investments
FY12
– higher performance fees (+2 bps) – Howard Mortgage Fund run off (-2 bps)
20 40 60 80 20 40 60 FY11 FY12 FY13 bps $m Legacy net income Aligned Investments (exc. Legacy) net income Aligned Investments margin (RHS)
19 1.4x 1.8x
0.5 1.0 1.5 2.0 30 June 2013
30 June 2013
1.4x to 1.6x target range
400 800 1,200 FY11 FY12 FY13 under LAGIC $m Transition balance Group cash CLC excess regulatory capital before transition balance
Full year 30 June 2013 > Capital management
Strongly capitalised
$1,074m
1, up from $813m
2 of 1.8 times
balance amortising to 1 January 2016
transition)
3
New conglomerate (Level 3) standards
implementation
4
CLC excess regulatory capital and Group cash CLC PCA multiples and target surplus
20
0% 25% 50% 75% 100% 10 15 20 25 30 FY11 FY12 FY13 cps Buy back - cps Dividend - cps Dividend and buy back payout ratio (RHS)
Full year 30 June 2013 > Capital management
Dividend
(unfranked)
(40% to 50%) for FY14 final dividend
1 increasing
– FY13 - 30% to 35% – FY14 - 35% to 40%
Buy back
through buy back
back in FY13
ratio target of 50%
1
– $35m - $45m
2 targeted for buy back in FY14
– expected to reduce issued capital by ~2%
3
Dividend and normalised payout ratio Dividend and buy back payout ratio
allocation priorities.
10% 20% 30% 40% 4 8 12 16 20 24 FY11 FY12 FY13 cps Dividend Normalised dividend payout ratio (RHS)
Full year 30 June 2013 > Strategy and outlook
Brian Benari
Chief Executive Officer 19 August 2013
22
Full year 30 June 2013 > Strategy and outlook
Distribution
Innovation
.
Diversification
23
98% 100% 95% 92% 0% 20% 40% 60% 80% 100% Since inception 5 years 3 years 1 year Outperforming benchmark Underperforming benchmark
Full year 30 June 2013 > Strategy and outlook
Funds Management
Fidante Partners
Aligned Investments
4 8 12 FY09 FY10 FY11 FY12 FY13 $bn Aligned Investments (exc. Legacy) Legacy
Fidante Partners – investment performance
1
Aligned Investments – FUM composition
10 20 30 FY 09 FY10 FY 11 FY 12 FY 13
Normalised RoE %
24
Full year 30 June 2013 > Strategy and outlook
guidance.
8%, excluding maturity of High Yield Fund annuity
2
in September 2013 quarter
to $475m, implying margin of 4.5%
3,
unchanged from FY13
average
achieved
ratio of ~50%
1 over the medium term
to 35% to 40%
1 of normalised NPAT
final FY14 dividend
to 32% to 36%
25
Strong business metrics delivered
Benefiting from long term sales
Scale driving earnings growth
Leader in retirement incomes delivering on shareholder promises
Executing our plan in attractive markets
Full year 30 June 2013 > Highlights
Full year 30 June 2013 > Appendix
27
Full year 30 June 2013 > Appendix
Distribution Product and Marketing (DPM) Life
Leading provider of annuities and guaranteed retirement income solutions in Australia Products offer certainty of guaranteed cash flows with protection against market, inflation and longevity risks
Funds Management
Fidante Partners – co-owned separately branded active fixed income and equity boutique investment managers Aligned Investments – originates and manages assets for Life and third party investors
Challenger Limited (ASX:CGF) Central functions
(Operations, Finance, IT, Risk Management, HR, Treasury, Legal and Strategy)
28
Life Funds Management Market
preferences
protection
mandated super system
9% to 12%
assets Competitive advantage
major hubs
focus
alignment of interests
management capabilities
products
Full year 30 June 2013 > Appendix
29
Full year 30 June 2013 > Appendix
10 20 30 40 50 60 70 50 100 150 200 250 300 350 FY09 FY10 FY11 FY12 FY13 cps $m Normalised NPAT Underlying operating cash flow Normalised EPS (RHS) 20% 30% 40% 50% 60% 50 100 150 200 FY09 FY10 FY11 FY12 FY13 Target $m Expenses Cost to income ratio (RHS) Cost to income ratio target (RHS)
Track record of strong profit and EPS growth
– normalised NPAT up 41% to $309m – normalised EPS up 50% to 58.6 cps, with active approach to capital management
exercise in November 2011
for underlying cash generated
Tight cost control
by 3% and revenues by 50%, driving cost to income ratio down 16 percentage points
services companies
Normalised NPAT, underlying operating cash flow and EPS Expenses and cost to income ratio
30
Full year 30 June 2013 > Appendix
Favourable macro trends
Asia-Pacific and world’s 4th largest
1
2 and projected to
grow to over $6 trillion by 2030
3
increasing to 12% by 2019
phase in 2014
4
Demographic changes
demographic
will represent 69%
3 of retirement population
assets, they will be replaced by Generation X (1961 – 1981) leading to growth in total post-retirement assets3
Projected superannuation assets 2010 to 2030
3
Australian population growth rate 2010 to 2030
4
1,000 2,000 3,000 4,000 5,000 6,000 7,000 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 $m Pre-retirement assets Post-retirement assets 20% 40% 60% 80% 100% 120% 0-5 10-15 20-25 30-35 40-45 50-55 60-65 70-75 80-85 Life target demographic
31
Full year 30 June 2013 > Appendix
0% 20% 40% 60% 80% 100% Denmark Spain OECD average Netherlands Germany Canada Switzerland Japan United States Australia Bills and bonds Cash and deposit Shares Other 40 50 60 70 80 90 1890 1910 1934 1955 1967 1976 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 years Females Males
Changes in risk preferences
lowest in OECD at 9% (OECD average 52%)
markets (~50% allocation)
more prudent asset allocation, including guaranteed income products
Increased focus on longevity
maintaining required annual income in retirement, managing market and inflation impacts, and longevity risk
expectancy in OECD
increase longevity
Australia has a low allocation to fixed income equivalants
1
Life expectancy at birth
2
32
Full year 30 June 2013 > Appendix
Distribution
approved product lists of all major hubs
account for ~50% of the Australian financial adviser market and similar portion of Life retail sales
Product
care annuities
guaranteed return product
Product categories Fixed term annuities Guaranteed Annuity Guaranteed Income Plan Guaranteed Income Fund Guaranteed Pension Fund On/off platform products with guaranteed rate and flexible terms including ability to draw principal Lifetime annuity Liquid Lifetime Lifetime annuity with liquidity feature in first 15 years Aged care annuity Care Annuity Lifetime annuity for aged care Institutional Guaranteed Index Return Institutional product with guaranteed returns Major platform representation BT/Asgard (Westpac) Colonial (CBA) IOOF MLC/Navigator (NAB) OnePath (ANZ) Macquarie
33
$4,000 $5,500 $7,000 $8,500 $10,000 $11,500 $13,000 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 Withdrawal value (LHS) Income (RHS)
Full year 30 June 2013 > Appendix
Liquid Lifetime Annuity
Provides a solution for retirees’ longevity, market and inflation risks
Liquid Lifetime example
1
Male aged 65, $100,000 invested
Care Annuity example Mary 78, moving into a nursing home with $350,000 Term Deposit 4.5% Care Annuity 4.5% Interest/income received (p.a.) $15,750 $15,750 Note: Interest/income received for social security $13,319 $0 Mary’s aged pension received (p.a.) $16,335 $20,316 Income tested nursing home fees paid (p.a.) ($1,952) $0 Total received (p.a.) $30,133 $36,066 Benefit in first year $5,933
For details on assumptions and calculations refer to page 24 of Challenger’s 18 June 2013 Investor Business Update available on our website.
Care Annuity
A new solution for aged care and superior to alternative products
34
Full year 30 June 2013 > Appendix
Benefits of annuities
layering which improves retirement outcomes
policy amount, interest only or interest and principal drawdown, payment frequency, and nominal or indexed payments
environment from age 60
and inflation protection
APRA
Account based pension to support peak spending years (including growth asset allocation)
Annuities and portfolio construction – income layering
Annuity/private pension – ASFA
1 comfortable living - $41k per annum
Annuity increases income to achieve a comfortable living standard Age pension
2 - $19k per annum
Minimum government support (social security) Desired income per year
65 75 85 95
Essential income per year
Age
35
Full year 30 June 2013 > Appendix
(800) (400)
800 500 1,000 1,500 2,000 2,500 FY09 FY10 FY11 FY12 FY13 $m $m Retail sales Retail annuity net book growth (RHS) 2 4 6 8 10 12 FY09 FY10 FY11 FY12 FY13 $bn
Sales growth
grown by 43% CAGR
– favourable macro trends – demographic changes – changes in retiree risk preferences – increased focus on longevity risk
AUM growth
– since FY09 AUM has grown by 17% CAGR
expanded distribution footprint and consumer and adviser education
Life – retail annuity sales and net book growth Life - AUM
Net book growth
– driven by increased sales offsetting run-off from closed book acquisitions
36
20% 40% 60% 80% % of survey respondents
Full year 30 June 2013 > Appendix
1 shows, outside of
health, retirees focused on
– longevity risk – peace of mind from regular and dependable income in retirement – inflation protection
addresses these high priorities
to be considered in the context of risk appetite
volumes are not impacted by interest rate cycles
Seniors priorities
1
Quarterly sales of US fixed term annuity sales through different interest rate cycles
2
1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 0.5 1.0 1.5 2.0 2.5 3.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 US$bn Quarterly US fixed rate annuity sales US 5 year bond rate High Priority Medium Priority Low Priority
37
Full year 30 June 2013 > Appendix
Annuitant key statistics
Policy reinvestment rates
demographic
1
reinvests 2.2 times
contracted maturity
New business and reinvestment New business and reinvestment combined
50 55 60 65 70 75 80 85 90 95 100 Customer age – new business Customer age – reinvestment 50 55 60 65 70 75 80 85 90 95 100
60 – 85 demographic
customer age customer age
38
Fixed income and cash cash flows Property income cash flows Infrastructure income cash flows Annuity liabilities cash flows Liabilities Assets (500) (250)
500 1 2 3 4 5 7 10 15 20 30 >30 $m years Annuities Other Debt investments Interest rate hedges Net sensitivity
Full year 30 June 2013 > Appendix
Assets and liabilities matched
match liabilities
business is written
to market
Robust risk management framework
rate, foreign exchange and inflation
management framework – including credit and property risk
comprehensive limit structure – including country, rating band, sector and counterparty limits
Assets and liabilities are cash flow matched Sensitivity to a 1bp movement in interest rates
39
Cash & AAA AA A BBB BB B Unrated 20% 40% 60% 80% 100% Investment Grade Non-Investment Grade
84% 16%
Full year 30 June 2013 > Appendix
Fixed income and cash 76% Property 16% Infrastructure 5% Equities and other 3%
Investment portfolio - $10.8bn
comprehensive limit structure
– asset allocation evolves to reflect relative value and annuity maturity profile
property
diversification and capital efficiencies
High quality fixed income portfolio
S&P and Moody’s methodology
than 35 bps normalised assumption
30 June 2013 investment portfolio Fixed income portfolio – credit quality
40
Full year 30 June 2013 > Appendix
Diversified fixed income portfolio
sectors, geographies and rating limits
income managers
Fixed income portfolio - by asset type Fixed income portfolio - by currency exposure
Cash & equivalents 16% Domestic corporate credit 33% Domestic Asset Backed Securities 25% Alternative finance 2% Offshore corporate credit 8% Offshore Asset Backed Securities 16% 20% 40% 60% 80% Australia US EU UK
41
Full year 30 June 2013 > Appendix
Corporate credit
– 81% investment grade – 72% externally rated
companies and fund managers debt
debt
bonds issued by PPP projects and loans to infrastructure companies
commercial real estate assets and typically
by collateral and typically originated by Challenger
Corporate credit - $3.4bn
Banks and financials 29% Sovereigns and Supranationals 2% Non-financial corporate lending 5% Infrastructure debt 33% Commercial real estate lending 13% Senior secured bank loans 18%
42
Full year 30 June 2013 > Appendix
Asset Backed Securities (ABS)
– 92% investment grade – 70% externally rated
was Australia’s largest non-bank securitiser
business which was sold in 2009)
in ABS
Asset Backed Securities - $3.4bn NIM – underlying mortgage run-off profile
Net Interest Margin (NIM) - $0.2bn
residential mortgages generating ~200 bps in Net Interest Margin (NIM)
and expected to amortise by 50% every 3 years
2 4 6 8 10 12 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Jul-29 Jul-30 Jul-31 $bn Actual Loan Balances Forecast Loan Balances NIM notes 7% RMBS 54% CMBS 6% Other Asset Backed Securities 14% Senior Secured Bank Loan Securitisation 19%
43
Full year 30 June 2013 > Appendix
conservative end of the spectrum
– Properties directly held or jointly held with Challenger Diversified Property Group (ASX:CDI) – 71% of tenants AAA rated – 90% of leases have fixed or CPI increases – WALE 6.6 years – Cap rate on Australian portfolio 8.1%
directly held suburban shopping centres
– primarily non-discretionary retail tenants – net exposure ~$240m – WALE 11.2 years
at least annually
Property portfolio Lease tenant quality – Australian direct property
10% 20% 30% 40% Australian
Australian retail Australian industrial Japanese REITs &
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 AAA AA A BBB BB B and Below NR
44
Logistics 22% Utilities 18% Patronage 21% Airport 12% Power Generation 5% Renewable 22%
Full year 30 June 2013 > Appendix
Attractive asset class
time
and geographic regions
invested in unlisted assets
Infrastructure portfolio – 30 June 2013
UK 31% Europe 25% North America 5% South America 4% Asia 2% Australia 33%
45
Full year 30 June 2013 > Appendix
Strong net flows
– alignment with investor interests – institutional operating platform – Boutique investment management capability – investment performance track record
institutional clients
Strong FUM growth
amongst peers and 9th largest
1
Funds Management – net flows Funds Management - FUM
10 20 30 40 50 FY09 FY10 FY11 FY12 FY13 $bn Aligned Investments Fidante Partners (4,000) (2,000)
4,000 6,000 8,000 FY09 FY10 FY11 FY12 FY13 $m Aligned Investments Fidante Partners
46
Full year 30 June 2013 > Appendix
Co – investment with Life
Administration services
Distribution services
relationships
management
support
Partnership
interest)
strategic development, succession planning
Investment Management
Administration
(Fidante Partners provided)
Distribution
(Fidante Partners provided)
Partnership / equity
(Fidante Partners and Boutique)
47
Boutique Investment date Asset class
May 2010 Australian equity income manager, delivering attractive income with lower volatility in total returns May 2012 Active investor, applying quantitative and qualitative techniques to portfolios of Asian and Greater China equities Aug 2010 Active manager of Australian small and micro cap equities, focused on quality of earnings and management Aug 2013 Active long only global and UK equities manager Nov 2008 High conviction, long/short Australian equities manager Jul 2013 Specialises in managing US and European portfolios of residential mortgage backed securities
Boutique Investment date Asset class
Aug 2010 Active investor in Australian equities, focused on undervalued companies with attractive growth potential Nov 2008 Long term, fundamentally driven investor in Australian inflation linked bonds Jun 2010 Active manager of global credit portfolios Sep 2005 Manager of concentrated, lower volatility, global equities portfolios Sep 2006 Bottom-up, high conviction stock picker, focused on mid and large cap Australian equities Feb 2007 Global fixed income manager, seeking value across a diverse range of strategies and geographies Oct 2005 Active manager of Australian small cap equities, focused on companies creating shareholder value through cash flow return
48
Full year 30 June 2013 > Appendix
Co – investment with Life
Co – investment with Life Real Estate Fixed Income Infrastructure Asset Backed Securities
Focus
for relative value
− risk adjusted − regular cash flows
investment thesis
products
Expertise in asset classes
49 The material in this presentation is general background information about Challenger Limited activities and is current at the date of this presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered with professional advice when deciding if an investment is appropriate. Challenger also provides statutory reporting as prescribed under the Corporations Act 2001. The half year financial report is available from Challenger’s website at www.challenger.com.au. This presentation is not audited. The statutory net profit after tax has been prepared in accordance with Australian Accounting Standards and the Corporations Act 2001. Challenger’s external auditors, Ernst & Young, have reviewed the statutory net profit after tax. Normalised net profit after tax has been prepared in accordance with a normalised profit framework. The normalised profit framework has been disclosed in the Directors’ Report and Note 2 – segment information, in the Challenger Limited 30 June 2013 full year financial report. The normalised profit after tax has been subject to a review performed by Ernst & Young. Any additional financial information in this presentation which is not included in Challenger Limited’s full year financial report was not the subject to independent audit or review by Ernst & Young. Any forward looking statements included in this document are by nature subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, Challenger, so that actual results or events may vary from those forward looking statements, and the assumptions on which they are based. While Challenger has sought to ensure that information is accurate by undertaking a review process, it makes no representation or warranty as to the accuracy or completeness of any information or statement in this document.
Important note
Full year 30 June 2013