Technical thoughts on CGF & HLS
Hello MM team,
Just your thoughts technically on CGF & HLS. Also does CGF benefit on rising interest rates in the future??
Thanks Tim.
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Answer
Hi Tim,
- Challenger (CGF) – This annuity business has struggled to keep up with the broad market post COVID but we envisage 10-15% further upside into 2022. Challenger like stable markets with gradually rising rates. They don’t like volatility and sharp moves as this can impact their risk weightings forcing them to cut risk at the wrong times – we saw this during the pandemic.
- Healius (HLS) – this healthcare operator has enjoyed a stellar run over the last 18-months but it feels tired around $5 making us neutral here. Covid tailwinds wearing off.
