Equity Trustees named note trustee for new Challenger product

Equity Trustees has been selected as the Note Trustee for Challenger Investment Management’s (Challenger IM’s) new, “first-of-its-kind” Australian Securities Exchange (ASX)-listed credit investment product.

The Challenger IM Listed Floating Rate Term Securities (LiFTS) 1 Notes offer investors access to a listed debt security with the backing of a strong portfolio featuring more than 100 public and private credit assets, and is intended for investors seeking “consistent income, daily liquidity, and limited buffer in the event of investment losses”.

“We are pleased to partner with Challenger IM on the launch of this pioneering investment structure in the Australian market,” Andrew Godfrey, Executive General Manager of Corporate and Superannuation Trustee Services at Equity Trustees, said.

“As a highly regarded credit manager with deep expertise across credit markets, Challenger IM shares our commitment to delivering innovative, high-quality investment opportunities for Australian investors.

“As Note Trustee, our role is to ensure the Challenger IM LiFTS operate to the highest standards of governance and compliance. We are proud to support Challenger in introducing this new listed structure, which expands investor access to diversified credit opportunities.”

The underlying portfolio, managed by Challenger IM, leverages the more-than-two-decades-long experience and wealth of expertise held by the firm’s investment team.

“The launch is aligned with Challenger’s long-term growth plans and commitment to investment excellence,” Victor Rodriguez, Chief Executive, Funds Management at Challenger, said.

“This is a strategic milestone for Challenger, and we’re thrilled to be working with Equity Trustees to launch this innovative, first-of-its-kind note structure to the Australian market. It builds on our 20 years of experience investing in public and private credit and reflects our commitment to growing our listed retail presence with institutional grade income-focused solutions.”

“With the growing demand for private credit, Challenger IM LiFTS aims to provide access to this asset class via an ASX-listed fixed term debt security. We were pleased with the overwhelming interest we received during the offer period and closed at the maximum raise amount of $350 million, demonstrating strong market appetite for this product.”