Thursday 11th March 2021
Challenger-backed Fidante's busy year continues
Challenger Financial Group (ASX: CGF) and its suite of asset management businesses have started 2021 off the same way 2020 finished. As part of their half yearly accounts, the company flagged a partnership with $500 billion Japanese asset manager Nomura Asset Management as both seek global diversification.
According to the deal, Nomura and Fidante will work together to support their ‘mutual ambitions’ in Australia and Japan.
Australian fixed-income and real-asset investments have seen strong demand from the Japanese for many years given their ultra low interest rate settings and the never ending search for yield. Nomura’s strategies may offer a unique differentiating point for advisers who haven’t been spoiled for choice investing into the region.
The announcements follow a strong year for Fidante, which ended 2020 $71.8 in assets under management across the likes of Alphinity, Ardea, Greencape and Bentham. Seperately, CIP Asset Management reported assets of $19.4 billion. Global investors are increasingly seeking out more diversified income alternatives with bond rates on the rise; an area of specialty for many of Fidante’s managers.
The broader Challenger Group (ASX: CGF), whose core business is selling and managing annuities, has seen strong growth in its guaranteed-income products through an existing partnership in Japan, growing 15% in the first half of 2021.
Late in 2020 CIP Asset Management made the decision to expand into managing money for retail clients launching a retail class of the Credit Income Fund. The group is widely respected as a leader in the credit sector.
Challenger had a strong start to 2021, with shares rallying strongly before somewhat of a reset when the half-year accounts were released. The company has been flagged as a potential beneficiary of the higher bond-rate trend, offering the group the ability to generate higher returns from its lower-risk investment portfolio.
