Reckon : Becoming a substantial holder from CGF

7 March 2017‌

The Manager

Company Announcements Office ASX Limited

20 Bridge Street

SYDNEY NSW 2000

By electronic lodgement

Dear Sir/Madam

Re: Notice of initial substantial holder - Reckon Limited (RKN)

Sydney

Level 2, 5 Martin Place Sydney NSW 2000 Australia

GPO Box 3698

Sydney NSW 2001 www.challenger.com.au

Telephone [phone]

Facsimile 02 9994 7777

We enclose notice of initial substantial holder in Reckon Limited. This notice is given by Challenger Limited and each of its associated entities named in Annexure 2 to this notice.

Yours faithfully

Andrew Brown

Company Secretary attach

Melbourne Level 19, 31 Queen Street PO Box 297, Flinders Lane, Melbourne VIC 3000 Telephone [phone] Facsimile 02 9994 7777

Brisbane Level 9, 241 Adelaide Street GPO Box 3234, Brisbane QLD 4001 Telephone [phone] Facsimile 07 3136 5407

Perth Level 5, 50 Georges Terrace, Perth WA 6000 Telephone [phone] Facsimile 08 9321 5277

Adelaide Level 7, Suite 714, 147 Pirie Street Adelaide SA 5000 Telephone [phone] Facsimile 08 8227 0395

Challenger Limited ABN 85 106 842 371 Challenger Group Services Pty Limited ABN 91 085 657 307

Challenger Life Company Limited ABN 44 072 486 938 AFSL 234670 Howard Commercial Lending Limited ABN 65 000 033 143

Challenger Management Services Limited ABN 29 092 382 842 AFSL 234 678

Challenger Retirement and Investment Services Limited ABN 80 115 534 453 AFSL295642 RSE Licence No. L0001304 Challenger Investment Solutions Management Pty Ltd ABN 63 130 035 353 AFSL 487354

Challenger Mortgage Management Pty Ltd ABN 72 087 271 109

Challenger Securitisation Management Pty Ltd ABN 56 100 346 898 AFSL 244593

Form 603

Corporations Act 2001 Section 671B

Notice of initial substantial holder

To CompanyName/Scheme ACN/ARSN

1. Details of substantial holder (1)

   Name

   Reckon Limited 003 348 730 Challenger Limited (and its entities listed in Annexure 2)

   ACN/ARSN (if applicable)

   106 842 371

   The holder became a substantial holder on

   02/03/2017

2. Details of voting power

   The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder becamea substantial holder are as follows:

   Class of securities (4)	Number of securities	Person's votes (5)	Voting power (6)
   Ordinary Fully Paid	Same as persons votes	5,670,500	5.01%

3. Details of relevant interests

   The nature of the relevant interest the substantial holder or an associate had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

   Holder of relevant interest	Nature of relevant interest (7)	Class and number of securities
   Challenger Limited (and its entities listed in Annexure 2)	Ordinary Fully Paid securities purchased on market by Challenger Limited (and its entities listed in Annexure 2) and obtains a relevant interest by virtue of section 608(3) of the Corporations Act 2001 (Cth).	Refer Annexure 1

4. Details of present registered holders

   The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

   Holder of relevant interest	Registered holder of securities	Person entitled to be registered as holder (8)	Class and number of securities
   Challenger Limited (and its entities listed in Annexure 2)	BNP Paribas Nominees Pty Limited	BNP Paribas Nominees Pty Limited	2,220,767 (Ordinary Fully Paid)
   Challenger Limited (and its entities listed in Annexure 2)	Citicorp Nominees Pty Limited	Citicorp Nominees Pty Limited	2,478,017 (Ordinary Fully Paid)
   Challenger Limited (and its entities listed in Annexure 2)	J P Morgan Nominees Australia Limited	J P Morgan Nominees Australia Limited	580,114 (Ordinary Fully Paid)
   Challenger Limited (and its entities listed in Annexure 2)	National Nominees Limited	National Nominees Limited	391,602 (Ordinary Fully Paid)

5. Consideration

   The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the four months prior to the day that the substantial holder became a substantial holder is as follows:

   Holder of relevant interest	Date of acquisition	Consideration (9)		Class and number of securities
   		Cash	Non-cash
   Refer Annexure 2	Refer Annexure 1	Refer Annexure 1	Refer Annexure 1

   603 page 2 / 2 15 July 2001

6. Associates

   The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

   Name and ACN/ARSN (if applicable)	Nature of association
   N/A	N/A

7. Addresses

The addresses of persons named in this form are as follows:

Name	Address
Challenger Limited (and its entities listed in Annexure 2)	Level 2, 5 Martin Place, Sydney NSW 2000

Signature

print name

Andrew Brown

capacity

Company Secretary sign here date 07/03/2017

DIRECTIONS

1. If there are a number of substantial holders with similar or related relevant interests (eg. a corporation and its related corporations, or the manager and trustee of an equity trust), the names could be included in an annexure to the form. If the relevant interests of a group of persons are essentially similar, they may be referred to throughout the form as a specifically named group if the membership of each group, with the names and addresses of members is clearly set out in paragraph 7 of the form.

2. See the definition of "associate" in section 9 of the Corporations Act 2001.

3. See the definition of "relevant interest" in section s608 and 671B(7) of the Corporations Act 2001.

4. The voting shares of a company constitute one class unless divided into separate classes.

5. The total number of votes attached to all the voting shares in the company or voting interests in thescheme (if any) that the person or an associate has a relevant interest in.

6. The person's votes divided by the total votes in the body corporate or scheme multiplied by 100.

7. Include details of:

8. any relevant agreement or other circumstances by which the relevant interest was acquired. If subsection 671B(4) applies, a copy of any document setting out the terms of any relevant agreement, and a statement by the person giving full and accurate details of any contract, scheme or arrangement, must accompany this form, together with a written statement certifying this contract, scheme or arrangement; and

9. any qualification of the power of a person to exercise, control the exercise of, or influence the exercise of, the voting powers or disposal of the securities to which the relevant interest relates (indicating clearly the particular securities to which the qualification applies).

   See the definition of "relevant agreement" in section 9 of the Corporations Act 2001.

10. If the substantial holder is unable to determine the identity of the person (eg. if the relevant interest arises because of an option) write "unknown".

11. Details of the consideration must include any and all benefits, money and other, that any person from whom a relevant interest was acquired has, or may, become entitled to receive in relation to that acquisition. Details must be included even if the benefit is conditional on the happening or not of a contingency. Details must be included of any benefit paid on behalf of the substantial holder or its associate in relation to the acquisitions, even if they are not paid directly to the person from whom the relevant interest was acquired.

12. Annexure 1 consists of 1 page and is referred to in Form 603 signed by me and dated 07/03/2017

    [Insert Signature Here]

    Andrew Brown Company Secretary of Challenger Limited Transactions: Company Name/Scheme: Reckon Limited (RKN) As at: 02/03/2017 Class of security: Ordinary Fully Paid

    Date of Change	Holder of relevant interest	Nature of Change	Consideration	Number of Securities	Person's Votes Affected
    Challenger Limited (and its entities listed in Annexure 2)	Opening balance	5,511,858	5,511,858
    14/12/2016	as above	Buy	46,973.94	31,467	31,467
    14/02/2017	as above	Buy	17,637.90	10,500	10,500
    15/02/2017	as above	Buy	11,481.12	6,834	6,834
    17/02/2017	as above	Buy	28,517.04	16,906	16,906
    22/02/2017	as above	Buy	21,984.40	12,932	12,932
    28/02/2017	as above	Buy	25,500.00	15,000	15,000
    01/03/2017	as above	Buy	21,039.49	12,026	12,026
    02/03/2017	as above	Buy	91,236.99	52,977	52,977

    Total Number of Securities 5,670,500

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