Challenger Investment Management launches Global ABS Fund
London – 1 November 2023 - Challenger Investment Management (CIM), part of the ASX-listed investment management firm Challenger Limited, is pleased to announce the launch of the Challenger IM Global Asset Backed Securities Fund (‘The Fund’).
The Fund builds on CIM’s existing range of products which aim to exploit inefficiencies in the pricing of credit risk across public and private markets. To date, all funds have invested across corporate, securitised and real estate backed credit targeting returns of between 3% and 8% per annum over cash.
The Fund is CIM’s first offering providing dedicated access to securitised credit. With over A$8 billion (as at 30 June 2023) invested in securitisation markets, investment experience dating back to 2005, and 14 investment professionals dedicated to ABS investing, the team has developed a strong edge in this relatively niche part of the credit landscape.
The Fund will target a 3-4% per annum through the cycle return before fees over the Euro Short Term Rate by investing predominantly in publicly rated investment grade opportunities across global developed securitised markets, with a particular focus on Europe, UK, Australia and opportunistically in the US. By selectively blending attractive private market opportunities with public market transactions, the Fund will offer incremental yield in addition to diversification away from more traditional strategies. It will focus on floating rate assets with interest rate and currency exposures hedged.
The Fund is structured as a Qualifying Investor Alternative Investment Fund (QIAIF) and is EUR denominated with share classes in alternative currencies available. It will be managed by Chris Whitcombe, Lead Portfolio Manager and Justin Voller, Co Portfolio Manager.
Chris Whitcombe, Head of European & US ABS, CIM, said: "The Challenger IM Global ABS Fund leverages Challenger Investment Management’s scale, track record and extensive experience in global securitisation markets. The Fund will invest across jurisdictions, asset types and within capital structures to deliver excess returns above traditional credit strategies without exposure to volatile high yield or bank capital markets. Given the attractive premium and profile offered by floating rate asset backed securities, the Fund offers institutional investors a compelling proposition.”
Fidante’s General Manager and Head of Distribution, EMEA, Adam Brown, said: “We are excited to be bringing the Challenger IM Global ABS Fund to market. We believe there is significant demand for ABS strategies which offer defensiveness, consistent income generation and diversification away from traditional markets. The Fund provides access to niche parts of the global ABS market managed by the high-quality team at Challenger Investment Management.
CIM has a strategic distribution arrangement with global investment management business Fidante, which forms part of Challenger Limited, and provides a range of support services encompassing operational, financial and client distribution services.
For more information, please contact Montfort Communications:
Jack Roddan: +44 7825 670 695
Lesley Wang: +44 7752 329 851
About Challenger Investment Management
Challenger Investment Management originates and manages assets for leading global and Australian institutions. Our clients benefit from the teams’ experience, scale and unique offerings.
Challenger Investment Management is a fundamentally driven, active investment manager that adopts a long-term focus on private debt. We aim to provide diversified sources of income by seeking opportunities in both the public and private sectors, whilst maintaining capital stability.
Challenger Limited (Challenger) is an investment management firm focused on providing customers with financial security for a better retirement.
Challenger operates a fiduciary Funds Management division, an APRA-regulated Life division and an APRA-regulated authorised deposit-taking institution. Challenger Life Company Limited (Challenger Life) is Australia's largest provider of annuities.
Fidante provides investors with access to best-in-class investment managers. Fidante is one of Australia’s largest active investors, offering compelling strategies across equities, fixed income, and alternative assets, via partnerships with leading investment teams. Fidante is a global investment management business with approximately AU$78.1 billion funds under management (as at 30 June 2023). Fidante forms part of Challenger Limited. https://fidante.com/au/about-fidante