Ann: 1H25 Investor Presentation and Outlook, page-3

"Can someone explain why they generate so little management fees for their fund management business ? It seems that they only generated 88 m$ of management fees, while they had 120 bn$ of FUM under management, so it corresponds to around 14 bp on an annual basis."

While division has title "FUNDS MANAGEMENT", that's quite a misnomer and it should really be called:

"15% FUNDS MANAGEMENT; 85% FUNDS MANAGEMENT AFFILIATION, ADMINISTRATION & DISTRIBUTION "

The 15% part is the pure Challenger Investment Management ("CIM"), but it only manages around $17bn of the total ~$120bn of FUM, off which it generated income of $24m in DH2024, i.e., $48m, annualised, which equates to 28bp income margin. While that might sound thin, CIM is not managing equities; 95% of the $17bn is fixed income assets (i.e. bonds) and 5% is direct property and 20bp to 30bp is very typical income margin for fixed income investment management.

The 85% part represents Fidante which does not manage investment funds directly at all. Instead, it partners with specialist investment managers by taking a minority interest in them and then providing administration, operation and distribution services to those affiliated managers. And that's how Fidante derives its income, not as investment manager per se, but in providing services to the investment managers on its platform.
(By way of further explanation, this is the same business model as PNI)
The FUM administered by Fidante (but actually managed by its affiliated investment managers) is around $103bn, and Fidante's income was $71m ($64m base income and $7m its share of performance fees) in DH20024, so $142m annualised, equivalent to 14bp of FUM.

So, as you can see, while this non-Life part of CGF is loosely called "FUNDS MANAGEMENT", it is a totally different animal to the sorts of funds management you seem to be thinking about, namely conventional equity investment managers such as Perpetual or Platinum. Those are "front-of-house", direct investment managers; CGF's Fidante (which, as was shown, is by far the largest part of its funds management segment) is really a "back office" support, admin and distribution business.

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