Challenger Financial Services has secured a substantial amount of funds from an industry superannuation fund for its white-label annuity product.
Challenger chief executive Dominic Stevens was unable to reveal the name of the industry fund, but said the new product was open and available to other interested industry funds.
"We would hope to do more over time. Not an insignificant amount of money came through that, but we're not talking hundreds of millions [of dollars]," Stevens said.
Challenger anticipates the white-label strategy, which could be regarded as a bespoke version of Challenger's Guaranteed Income Fund, will grow over time, with the possibility of $10 million or $20 million going onto the platform every couple of months.
"In some senses that's one industry or institutional fund out of a number of institutional funds that could actually do the same transaction," Stevens said.
"We could actually be more prevalent on a whole number of industry fund platforms."
The company was awarded $700 million of aligned investment mandates from sovereign wealth and industry funds in the first half of the 2011 financial year.
In October last year, Challenger said it had $750 million of mandates in the pipeline.
"That doesn't mean there are $50 million to go; there are a few $100 million transactions in the pipeline," Stevens said.
