Challenger Limited managing director Richard Howes has notified the board of his intention to retire in March 2022.
“On behalf of the board I would like to extend our deep gratitude to Richard for his leadership and integrity and for the instrumental role he has played in making Challenger the business it is today – the clear leader in retirement incomes and the third largest active funds manager in Australia,” Challenger chairman Peter Polson said.
“As a result of Richard’s deep understanding of capital markets and their impact on our business model, he will leave Challenger with robust and sustainable capital settings. He, together with the team, have developed a clear and compelling strategy which creates the platform for our next phase of growth.”
Mr Howes joined Challenger in 2003 and has worked in a number of roles during that time including group CEO, CEO of distribution, product and marketing and CEO of Challenger’s life business.
“I am exceptionally proud of what we have accomplished at Challenger, both in my time as CEO and as part of the leadership team,” Mr Howes said.
“We have built a very special business that is driven by a genuine commitment to delivering on its purpose to provide customers with financial security for a better retirement.
“With the certainty that the business is primed for growth, I feel that is now a good time to step aside and begin the process for a new leader to drive Challenger’s exciting next chapter.”
The news comes as Challenger released its FY21 results and reported record sales growth.
The company reported $110 billion group AUM, an increase of 29 per cent from last year, and fund management net flows of $16 billion which Mr Howes attributed to its life and fund management businesses.
"Challenger's performance demonstrates that diversifying our client base, distribution channels and product offering is working - our life business delivered record sales of $7 billion, whilst net flows in funds management hit a record $16 billion," Mr Howes said.
"Following our decision to reposition the investment portfolio during the early stages of the pandemic, as flagged, we gradually deployed significant cash balances into higher returning assets throughout the year, with the full benefits to be released next year."
"We have maintained our strong capital position and enhanced our risk settings to underpin our strong brand and customer franchise and ensure we have the flexibility to withstand market movements."
Challenger anticipates to continue strong profit growth in FY22, with a normalised net profit of between $430 and $480 million before tax; a 15 per cent growth on this year.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
