Challenger expects lift in assets under management

By NZPA

Thursday 28th November 2002

Challenger International Ltd said today it expected a 25 percent increase to approximately $A13 billion ($NZ14.8 billion) in assets under management for 2002/03.

Chairman Gil Hoskins told shareholders at the annual general meeting that the company expects to write $A1.0 billion in annuities in the year.

Mr Hoskins said the board was assessing all current operations with a view to increasing the focus on the company's two major business lines -- funds management and annuities.

He said a cost review will aim to achieve a $A20 million reduction from the operating budget over the 2003 calendar year, mainly from peripheral activities and distribution networks.

Specific areas to be impacted include the company's UK and New Zealand operations.

"Following a four month -- and ongoing -- internal review, we are making pro-active decisions to improve our profit outlook while making our business more transparent and easier for investors to understand," he said.

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