POWERED BY MOMENTUM MEDIA
Challenger feels advisers’ pain
Challenger Limited has acknowledged that the negative perceptions of financial planners generated by the Royal Commission and other events are having an impact on its annuities business.
In commentary attaching to the release of its half-year results, Challenger said its Life business relied on financial advisers, both independent and part of major hubs, to distribute its products.
“Following hearings on financial advice in the Royal Commission into Misconduct in the Banking and Financial Services Industry there has been reduced customer confidence in retail financial advice and significant disruption across the adviser market,” it said.
“This includes increased adviser churn and reduced acquisition of new clients by financial advisers.”
“While there is a relatively less direct impact form the Royal Commission final report on Challenger, and Life’s customers are not questioning the quality of its products or services, the disrupted industry environment is impacting Life’s sales,” the commentary said.
“Life has a strong reputation with adviser trust in the quality of its products and services and is broadening its distribution reach by making its annuities available on platforms targeting the individual financial advisers market,” it said.
Recommended for you
The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
