23/04/2025 09:31

Challenger Ltd (CGF) $6.88

CGF was a market darling about eight years ago, but as so often happens, when too many people become bullish, the wheels can fall off. In the case of CGF, this was dramatic, with the stock falling 80% in less than three years.

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18/02/2025 17:07

Challenger Group Financial (CGF) $5.58

CGF –8.97%: We’ve been consistently cautious on CGF given the complexity in their book that underpins the annuity liabilities, and today was another reminder of why this stance remains on point, with lower margins hurting todays result;  

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03/05/2024 09:33

Challenger Ltd (CGF) $6.38

Previous market darling CGF is unchanged so far in 2024, similar to the last few years. CGF recently reported its 3Q24 sales and flows. Life net flows were below forecasts, whilst Funds Under Management (FUM) was surprisingly strong, with flows in both divisions relying less on the low-margin institutional segment.

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17/11/2023 09:20

Challenger Ltd (CGF) $5.79

CGF slipped -2% on Thursday, posting fresh 52-week lows in the process, although the stocks traded sideways since mid-2021. While we would expect CGF to enjoy a favourable annuity sales backdrop based on the ability to offer customers higher returns (as yields have risen on the fixed income investments that underpin their annuity book).

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15/02/2023 09:19

Challenger Ltd (CGF) $7.58

Financial services provider CGF rallied +4.41% yesterday after the company reaffirmed guidance, in our opinion a sign of how little confidence the market had in the company meeting their numbers. This once-market darling is still trading 47% below its 2018 high, not a great result considering the ASX200 has rallied more than +20% over the same time, and that’s before we even consider dividends.

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14/02/2023 16:56

Challenger (CGF) $7.58

CGF +4.41%: the investment manager posted a reasonable set of 1H numbers, headlined by a small beat at the profit line as higher interest rates create a tailwind for their core annuity offering. Net Profit Before Tax (NPBT) was a small beat at $250m.

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04/11/2022 09:23

Challenger Ltd (CGF) $7.04

CGF is finally looking more interesting after a very tough few years, back in 2017 it was one of the market’s “go-to” stocks but things can change as we so often see. Annuities are set to become more attractive given the increase in rates so inflows should theoretically increase especially as economic uncertainty weighs on investors.

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16/08/2022 16:58

Challenger Limited (CGF) $6.40

CGF –10.11%: Hit today despite their Net Profit Before Tax (NPBT) coming broadly in line with expectations, however, the composition of the result was soft which is very typical of CGF. Weaker earnings in business units were offset by lower corporate costs however, the main negative surprise came from bank losses as higher than expected regulatory and...

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18/02/2022 09:18

Challenger Ltd (CGF) $6.74

Annuity investment firm CGF rallied strongly yesterday to close up 6.7% after reporting a 21% lift in NPAT to $238mn for the 1st half year. This is a noxiously complex business to analyse and frankly, they’ve dropped the ball a number of times in terms of the portfolio skews they use / risk they take on to underpin their written annuities – it’s not an easy business but it can also...

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04/02/2022 09:16

Challenger Ltd (CGF) $5.91

Its been a while since MM looked at old market favourite CGF and it doesn’t take long to see why, we may have seen significant volatility from the likes of Magellan (MFG) and Pinnacle Investments (PNI) in the sector but CGF’s trading at the same level as it was this time last year. CGF continues to trade at half of its valuation back in 2017 when most...

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