Despite Strong FY17 Results, Challenger’s Future Growth Is Capital-Intensive. AUD 11.50 FVE Intact
No-moat Challenger Limited delivered another solid performance with a fiscal 2017 normalised NPAT of AUD 385 million, 6% higher than fiscal 2016, but 3% below our forecast. We maintain our AUD 11.50 per share fair value estimate despite fiscal 2018 guidance being modestly below expectations. At current prices, the stock is trading 7% above our valuation. Normalised NPAT growth guidance for fiscal 2018 was a mild disappointment with the 8%-12% range falling short of 10%-15% expectations. The outl...Challenger is an investment manager with offices in Australia and London. Co.'s operating segments are: Life and Funds Management (FM). The Life segment comprises Challenger Life Company Limited (CLC), a provider of annuities and guaranteed retirement income products, and Accurium Pty Limited, a provider of self-managed superannuation fund actuarial certificates. The FM segment comprises Fidante Partners and Challenger Investment Partners (CIP). Fidante Partners provides administration and distribution services. CIP develops and manages assets under Co.'s brand for CLC and third party institutional investors. The investments managed by CIP are mainly in fixed income and commercial property.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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