Challenger Investment Management

About Challenger Investment Management

In 2005, Challenger Investment Management was established as an alternative credit manager with a strong pedigree in the less liquid parts of global developed credit market.

The team believes that high income, diversifying and defensive portfolios can be constructed by taking a multi-strategy approach to credit investing across both public and private credit markets and avoiding more volatile interest rate and currency risks.

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Approach

The team’s investment philosophy is that taking a private approach to lending leads to better risk/return outcomes for clients across private and public markets. A private approach means underwriting credit risk as though you will own it – not trade it. It means actively sourcing new opportunities rather than waiting for a bank to call, and engaging with borrowers and arrangers directly to effect structural changes to transactions in order to mitigate downside risks and access better quality information.

Our Funds

Challenger IM Global Asset Backed Securities Fund

Fixed Income

ESG

For further information on the team’s ESG integration process please refer to the Responsible Investment Statement.

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The team believes that incorporating material ESG factors in investment decisions can improve investment outcomes for clients by promoting more sustainable business practices.

The team has adopted a systematic approach to incorporating ESG considerations into its investment process, and its specialty in private lending markets provides a greater opportunity for engagement.

The team believes that its approach to ESG integration not only benefits its clients but also can have a positive impact on society and the environment.

Resources

ESG

Responsible Investment Statement

Insights

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Introduction to Collateralised Loan Obligations (CLOs)

A CLO is a type of structured finance product which is backed by a diversified pool of corporate loans. These are typically loans to businesses with sub-investment grade credit ratings. When a CLO is issued, a large number of loans are packaged together, structured into tranches with varying credit ratings and then sold to investors in the market.

Introduction to Asset-Backed Securities

Asset-backed securities (ABS) are a type of structured credit instrument where bonds are backed by underlying pools of assets such as mortgages, loans or other corporate or consumer debt. A portfolio of comparable assets are grouped together and held by a Special Purpose Vehicle (SPV). These are then securitised with the bonds backed by the asset portfolio -sold to investors in the market.

Navigating the 2024 Landscape of UK & European ABS: Mid-Year Review and Outlook

As we pass the halfway mark of 2024, the UK, and European asset-backed securities (ABS) markets continue to demonstrate robust performance and resilience. We review H1 2024 here and expectations for the rest of the year.

Team

The Challenger Investment Management team comprises a diverse group investment professionals with extensive industry experience across a wide range of global public and private credit markets. To view the full team, please visit challengerim.com.au