The Challenger Financial Group Ltd (ASX: CGF) share price has been in the doldrums recently and this afternoon the group announced the CEO of its funds management business, Ian Saines, is to leave the group.
Challenger's core business and main profit driver is its annuities group, however, the funds management group is still a material contributor to the bottom line with the group now looking for a replacement.
The group CEO remains Richard Howe who has his hands full at the moment given that for the quarter ending March 31 2019 Australian annuity sales fell 7% and Japanese annuity sales collapsed 49%.
Challenger blaming the tumbling Japanese annuity sales on US dollar denominated risk free money market instruments becoming more attractive to Japanese investors as the U.S. Fed lifted cash rates over the last 12 months.
Challenger's funds management business remains heavily leveraged to the overall health of equity markets.
