About the Funds
Overview
The Challenger Investment Funds are investment products for
those looking to accumulate wealth by investing in managed
funds. The products give you access to 10 funds, allowing
you to invest both locally and globally across different
markets and asset classes.
Challenger has a growing reputation as an investment
manager, however, they realise that there is more than one way
to manage money and the range of funds offered illustrates
Challenger’s own strengths in investment management, as well
as providing investors with access to other quality
investment managers.
The Challenger Investment Funds give you access to:
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Challenger’s in-house expertise: in fixed
interest, property securities and Australian shares
through the following funds: |
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Challenger High Yield Fund |
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Challenger Property Securities
Fund |
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Challenger Australian Share Fund |
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Challenger Select Australian
Share Fund |
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Challenger Australian Share
Income Fund |
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Challenger Socially Responsive
Share Fund |
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Challenger Smaller Companies Fund |
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Quality managers with whom Challenger have alliances:
giving investors access to the following funds
managed by HSBC Halbis: |
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Challenger Asian Share Fund |
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Challenger China Share Fund |
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Multi-manager funds:where QIC, as investment
consultant, along with Challenger have selected and blended
a range of quality managers together to offer the Challenger
MTM International Share Fund. |
For more
information about the Funds and how they are managed, please
refer to the relevant Fund profiles in the PDS.
Challenger High Yield
Fund
Due to the continuing extreme volatility in global
financial markets this product has been placed on hold.
Overview
The Challenger High Yield Fund invests primarily in a
diversified portfolio of high yielding, fixed interest and
hybrid debt/equity investments.
The Fund is designed for investors seeking to diversify the
income-producing segment of their investment portfolio and
are willing to accept some additional risks in return for
the potential for higher performance.
The suggested investment timeframe is at least three years.
Objective
To outperform both the UBSA Bank Bill Index and the UBSA
Composite (All Maturities) Bond Index over any 12-month
period.
Investment style
Challenger adopt an active approach to managing the Fund.
Challenger are
active participants in the hybrid securities market in
Australia and have considerable expertise in assessing the
investment potential of rated and unrated fixed interest and
hybrid securities.
Fund
Flyer:
HYF_Flier.pdf.
Category: Fixed Interest and Mortgage
Funds
Challenger Property
Securities Fund
Overview
The Challenger Property Securities Fund invests in a
diversified portfolio of listed property and
property-related securities.
Fund objective
To outperform its benchmark, the S&P/ASX 300 Property
Trust Accumulation Index, over rolling three year periods,
while providing investors with a quarterly income stream and
some capital growth over the medium term (at least three
years).
Investment style
Challenger are an active property manager. In managing listed
property securities, Challenger employ a ‘top-down’ macroeconomic
and ‘bottom-up’ company specific research and analysis
approach.
Fund Flyer:
PropertySecuritiesFlyerMarch07.pdf
Category: Property and Infrastructure
Funds
Challenger
Australian Share Fund
Overview
The Challenger Australian Share Fund invests
in a diversified, actively managed portfolio of shares in
Australian companies.
Challenger’s
investment philosophy is based on the belief that relative
outperformance comes from investing in quality companies
with above-average growth potential or companies whose share
prices are currently undervalued.
Fund objective
To outperform the S&P/ASX 300 Accumulation
Index over rolling three-year periods.
Investment style
The
Fund is designed to provide a ‘style neutral’ Australian
share portfolio. Challenger are an active manager and believe
they can
add value and outperform the market by using fundamental
research to identify companies mispriced or overlooked by
the market .
Fund
Flyer:
ASF_Flier.pdf
Category:
Australian
Shares
Challenger Select
Australian Share Fund
Overview
The Challenger Select Australian Share Fund is a highly
concentrated portfolio of 10-30 stocks that aims to produce
higher returns over the long term through a targeted and
transparent research process.
The Fund is designed for investors that are comfortable with
accepting more risk to increase their chances of long-term
performance.
Fund objective
To outperform the S&P/ASX 200 Accumulation Index over
rolling five-year periods.
Investment style
Challenger use a concentrated, active ‘bottom-up’ approach to manage
the Fund’s investment portfolio. Their research process
targets companies that they believe are benefiting from
industry change and companies earning below their long-term
potential.
Fund
Flyer:
SASF_Flier.pdf
Category:
Australian
Shares
Challenger
Australian Share Income Fund
Overview
The Challenger Australian Share Income Fund provides
investors with the opportunity to access a diversified
portfolio of Australian securities listed or about to list
on the Australian Stock Exchange (ASX).
The Fund is
designed for investors seeking a fund with a particular
emphasis on income (some of which maybe tax effective) while
retaining the potential for capital growth.
Fund objective
To provide a higher level of income than the average of the
broader Australian sharemarket, with the potential for
capital growth over the medium to long term.
Investment style
This is an actively managed fund that seeks to generate
income and capital growth over the medium to long term (ie,
at least five years) by identifying companies with
attractive, sustainable and growing dividends.
The Fund can
invest in Australian listed shares, derivatives or hybrid
equity securities such as convertible notes, redeemable
preference shares and partly paid shares.
Fund
Flyer:
ASIF_Flier.pdf
Category:
Australian Shares
Challenger Socially Responsive Share Fund
Overview
The Challenger Socially Responsive Share Fund aims to give
investors the opportunity to integrate their social values
with their long-term investment objectives.
Socially responsive investing (SRI) is a holistic investment
approach that can include analysis of companies’ social,
labour, ethical and environmental performance within the
framework of traditional investment or financial analysis.
Challenger uses both negative and positive screens to
discern the SRI credentials of Australian companies listed
on the Australian Stock Exchange.
Objective
To outperform the S&P/ASX 300 Accumulation Index over
rolling three-year periods.
Investment style
Challenger employs an active, style-neutral approach to
managing the Fund.
Challenger first aim to screen the investment universe to identify
companies that fail the SRI principles of their external
adviser. Companies that pass this screening are then ranked
via their detailed investment analysis. The final portfolio
will be subject to portfolio construction guidelines and
positive SRI indicators.
Category: Socially Responsible Funds
Morningstar Rating 3 stars
www.morningstar.com.au
Challenger
Smaller Companies Fund
Overview
The Challenger Smaller Companies Fund invests primarily in companies outside the 100 largest companies listed on the Australian Stock Exchange at the time they are first acquired.
Challenger believe there are inefficiencies in investment markets, particularly amongst the market for smaller listed companies. Generally, smaller companies are not as comprehensively researched as larger companies so investors may be less likely to recognise their investment potential. Challenger works to identify and take advantage of such inefficiencies in the market.
Objective
To outperform the S&P ASX Small Ordinaries Accumulation Index over rolling three-year periods.
Investment style
Challenger are an active investment manager. Their approach to managing the Fund is based on paying a reasonable price for companies with an improving profit growth profile, while paying particular attention to the underlying quality of company earnings and management.
Fund
Flyer:
SCF_Flier.pdf
Category:
Australian Shares
Challenger Asian Share
Fund
Overview
The Challenger Asian Share Fund provides investors with
access to a diversified portfolio of listed equities and
related investments listed on stock exchanges in the Asian
region (excluding Japan).
The Fund primarily invests directly or indirectly in
equities and other securities listed in Hong Kong, South
Korea, Taiwan, China and other Asian countries.
Fund objective
To outperform its benchmark, the MSCI All Country Far
East Free (ex Japan) Accumulation Index-unhedged, over
rolling three-year periods while providing capital growth
over the medium to long-term (at least 5 years).
Investment manager
Halbis Capital Management (Hong Kong) Limited (Halbis
Capital Management) (formerly known as HSBC Halbis Partners
(Hong Kong) Limited) is the Fund’s investment manager.
Halbis Capital Management is part of HSBC Group Investment
Businesses, a core global investment management business of
the HSBC Group. With a network of investment and client
relationship teams worldwide, HSBC Group Investment
Businesses has strong global investment capabilities.
Investment style
HSBC employ a fundamental analytical approach, designed
to exploit the inefficiencies of the Asian market by
identifying mispriced stocks. The process results in no
systematic style bias over time. Key to the process is the
detailed, in-depth research carried out by an extensive team
of experienced investment professionals based in Asia.
Category:
International Share Funds
Challenger China Share
Fund
Overview
The Challenger China Share Fund provides investors with a diversified portfolio of growth-orientated Chinese equities offering the potential for long-term capital growth.
Fund objective
To provide capital growth over the medium to long-term (at least five years) by investing primarily in a diversified portfolio of shares and related securities of publicly traded companies registered, or with an official listing on, a stock exchange in the People’s Republic of China as well as investing in shares of public companies that have a significant business or investment link in China.
The Fund also aims to provide net returns above the benchmark, MSCI China Index - unhedged, over rolling five-year periods.
Investment manager
Halbis Capital Management (Hong Kong) Limited (Halbis Capital Management) (formerly known as HSBC Halbis Partners (Hong Kong) Limited) is the Fund’s investment manager. Halbis Capital Management is part of HSBC Group Investment Businesses, a core global investment management business of the HSBC Group. With a network of investment and client relationship teams worldwide, HSBC Group Investment Businesses has strong global investment capabilities.
Investment style
The investment manager uses a combination of ‘top down’ and ‘bottom up’ analysis with a focus on economic fundamentals in order to determine how these economic fundamentals affect the domestic business cycle. They then evaluate earnings growth, interest rate sensitivity, management quality and liquidity to select stocks best placed to benefit from the prevailing conditions. The investment manager are experts in China.
Category:
International Share Funds
Challenger MTM
International Share Fund
Overview
The Challenger MTM International Share Fund invests in a diversified portfolio of shares in international companies. The Fund employs a ‘manage the managers’ (MTM) research process, which seeks to identify and blend the best specialist investment managers within the international share asset class.
The current managers' weighting in the portfolio is outlined below:
| Portfolio |
Strategic weighting |
| Arnold &
Bleichroeder Advisers |
25.5% |
| Alliance Capital
Management |
23.5% |
| Altrinsic Global
Advisors |
23.5% |
| Evergreen/Tattersal
Advisory Group |
21.5% |
| QIC Active
Currency Trust |
6.0% |
Fund objective
To provide capital growth over the medium to long term (at least five years) and some income by investing primarily in international sharemarkets, and returns above the MSCI World (ex Australia) Accumulation Index-hedged over rolling three-year periods.
Investment Consultant
QIC has been appointed as the investment consultant to provide manager research and selection services for Challenger’s range of MTM funds.
Investment style
The MTM research approach involves a regular assessment of each investment manager’s capabilities, focusing on corporate strength, investment philosophy and process, people, systems and technology. Within international shares, QIC selects managers primarily on the basis of their bottom-up stock picking skills. To limit the risk relating to adverse currency movements, QIC hedges the relevant benchmark exposure of the portfolio to Australian Dollars.
Category:
International Share Funds |
