PM Capital Australian Companies Fund on Challenger Limited
Thesis
Challenger is viewed as the undisputed leader in the Australian annuity market and well positioned to benefit from APRA's revised capital framework. The fund expects the transition to a more efficient capital model to improve the economics of the business. At the same time, secular growth in domestic demand for guaranteed retirement solutions should support the company's long-term opportunity. These factors remain central to PM Capital's investment thesis.
“The transition towards a more efficient capital model, coupled with secular tailwinds driving increased domestic demand for guaranteed retirement solutions, remains central to our investment thesis.”