Challenger says its Funds Management Chief Executive Nick Hamilton has been appointed CEO, replacing Richard Howes whose retirement was announced last August.

Mr Hamilton commenced in his new role at the start of this month with Mr Howes to remain with the business until the end of the first quarter to ensure a smooth transition, Challenger said in a statement.

Chairman Peter Polson says the new CEO was shortlisted after an extensive search internally and externally to fill the position.

Under Mr Hamilton’s leadership, the Funds Management business has grown significantly, Mr Polson said.

“In [Mr Hamilton], we have an outstanding candidate, with a proven track record of leading and growing high performing businesses and driving innovation, both at Challenger and across the financial services industry in Australia and internationally,” he said.

“With a deep understanding of our business, a clear vision for the future and the acumen to maximise the significant opportunities ahead, [he] is ideally placed to lead Challenger through this exciting next chapter.”

Challenger says it will now undertake a search for a new executive to fill Mr Hamilton’s previous role.