The Motley Fool

Challenger flags its funds management CEO is calling it a day

The Challenger Financial Group Ltd (ASX: CGF) share price has been in the doldrums recently and this afternoon the group announced the CEO of its funds management business, Ian Saines, is to leave the group.

Challenger’s core business and main profit driver is its annuities group, however, the funds management group is still a material contributor to the bottom line with the group now looking for a replacement. 

The group CEO remains Richard Howe who has his hands full at the moment given that for the quarter ending March 31 2019 Australian annuity sales fell 7% and Japanese annuity sales collapsed 49%.

Challenger blaming the tumbling Japanese annuity sales on US dollar denominated risk free money market instruments becoming more attractive to Japanese investors as the U.S. Fed lifted cash rates over the last 12 months.

Challenger’s funds management business remains heavily leveraged to the overall health of equity markets. 

Here it is... Our #1 Dividend Share Pick for 2019

For a brief time, The Motley Fool Australia is giving away some of its most valuable research of the entire year. Simply by clicking the link below, you’re invited to discover our #1 absolute favourite dividend share to potentially profit inside the next 12 months (and beyond).

HINT: This is an ‘under the radar’ company boasting in a mouth-watering combo of GROWTH potential and FULLY FRANKED DIVIDENDS. Yet chances are you don’t know the name or the code. And perhaps you’d like to peek at our full investment analysis too, including all the reasons we expect this company to soar in 2019?

To get your access before it’s too late, simply click below now. Your copy is free, but this valuable report will NOT be available forever...


Motley Fool contributor Tom Richardson owns shares of Challenger Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.