Charles Leyland, Managing Director of Leyland Private Asset Management, identifies Challenger as a stock with growth and value. “With the price you’re paying for the current growth, and the risk being on the upside, that’s a good example of a stock that, while you’re not buying it on 5, 6 or 7 times earnings, you’re compensating for that with growth.” Challenger was also a quiet winner from this year’s federal budget, with a number of their products gaining tax benefits. Competition in the market is thin currently, as the banks are steering clear of annuities at this stage due to capital requirements and issues in the other businesses, leaving free Challenger to develop a market leading position. “The market is forecasting about 10% growth; we actually think the risk is that they’ll get greater growth.” Watch the full interview below:
Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.