Home / Asset management / Challenger-backed Fidante’s busy year continues

Challenger-backed Fidante’s busy year continues

Asset management

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.

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