Presentation on theme: "An Overview of IFM September 2013. Page 2 Today’s discussion About the IFM Global Group A profile of our asset classes."— Presentation transcript:
An Overview of IFM September 2013
Page 2 Today’s discussion About the IFM Global Group A profile of our asset classes
Page 3 About the IFM Global Group IFM manages $46 billion in three of the four largest pension markets in the world.... across four asset classes... $46b IFM AUM BY ASSET CLASS $bn, 30 June 2013 Debt 14 Private Equity 2 Listed Equities 14 Infrastructure 16 * FUM figures at 30 June 2013.
Page 4 About the IFM Global Group We do this for a range of leading wholesale investor brands that have a long term investment focus. 30 of them are shareholders, which provides for a unique ownership structure... Superannuation funds Non-super investment funds Government authorities Universities Not-for-profit foundations US Taft-Hartley funds US endowment funds... and a philosophical alignment that ultimately focuses on the member investor.
Page 5 IFM has an impressive 20 year history
Page 6 CEO and Board Chief Executive Board Members Brett Himbury joined IFM in April Brett’s experience spans 30 years in the financial services industry. Most recently he was Managing Director of Tyndall Investment Management, the funds management business of Suncorp. Prior to that he held a range of leadership roles across the Funds Management and Financial Planning sectors, and with this diversity of experience brings a strong track record and unique insight to IFM. ChairmanDirector Michael Migro Head of Business Strategy (BT Funds Management), Joint Managing Director (Westpac Financial Services), CEO (Perpetual Funds Management and Principal Global Investors Australia), and most recently in the USA as COO (Principal Global Investors) and President and Chief Operating Officer (Post Advisory Group LLC). Also a Director of Industry Fund Services and the Investment Committee of the Steve Waugh Foundation Australia. Brian Pollock Director of Industry Super Holdings, Members Equity Bank, AE Smith & Son and Chair of the Macquarie Real Estate Equity Fund series of companies. Former chair of Becton Property Group and former director of Programmed Maintenance Services. Former Head of Property Investment and former Executive Director Property and Lending at National Mutual. Former Chairman of Clive Peeters and Former Chairman of Industry Super Property Trust. Garry Weaven Chair and Founder of IFM, Chair of Pacific Hydro, Director of Members Equity Bank. Appointed to the Federal Government’s Superannuation Advisory Committee in 2008, and to the Australian Securities and Investments Commission’s External Advisory Panel in Assistant Secretary of ACTU in the 1980s. Murray Bleach Former Head of North America for Macquarie Bank (US) and former Global Head of Macquarie's Private Placements Group (Aus). Director Glenn Bunney Chief Executive in industrial and human services, Trustee Director with HESTA, Director of ISPT and IGIPT. Member of the IFM IAB. Director and Board office on several not-for-profit Boards at State, National and International levels. Director Linda Rubinstein Former Chair of the Australian Government Employees Superannuation Trust (AGEST). Former union nominee to the board of HOSTPLUS and ACTU nominee to the Board of Cbus. Has part-time role with Holding Redlich as Director of the firm’s Pro-Bono practice.
Page 7 Collective excellence for individual investors IFM’s Strategic Goals Meet or exceed return objectives across all products over rolling five year period Double our preferred partners with like minded parties across multiple markets in five years Grow profit to reinvest in capabilities Retain, develop and motivate people who achieve excellence IFM’s Cultural Foundations Prioritise Investors Achieve Excellence Inspire Innovation Respect Everyone Lead by Example
Page 8 The future – challenging, exciting... potentially exceptional Volatile, generally low growth investment markets Deliver superior performance across all asset classes Build scale and commensurate investor benefits by selectively diversifying Continue to innovate to meet evolving investor needs −Private Equity −Private Assets −Global Infrastructure Debt −Australian Infrastructure −Specialised Small Caps Retain and leverage our unique model of ownership.
Page 9 Leadership in Infrastructure, Listed Equities, Debt and Private Equity About the IFM Global Group A profile of our asset classess
Page 10 A closer look at IFM Infrastructure IFM FUM ASSET CLASS AND SECTOR BREAKDOWN $Bn, 30 June 2013 Debt Listed Equities Infrastructure 56% International 44% Australia IFM invests $16 billion in Infrastructure assets split across Australian and international funds in open-end structures successfully sourcing, building and managing a diversified portfolio. One of the world’s largest global infrastructure manager with 26 assets worldwide Strong deal pipeline both locally and globally Team of 47 infrastructure professionals in Australia, North America and Europe 79 investors with dependable capital sources 18 year track record has returned 12.1% pa (net of fees and tax) since inception* Established infrastructure portfolio diversified across industry sectors and geographical regions Open end fund structure aligned to the long-term characteristics of the asset class * IFM Australian Infrastructure Fund from 1 August 1995 to 30 June Infrastructure AUM amounts include undrawn investor commitments and all infrastructure cash holdings Private Equity
Page board seats on 26 assets across a range of industry sectors Australian Infrastructure Fund 18 assets International Infrastructure Fund 8 assets Current Assets 18 Total NAVAU$6.6bn Current Assets8 Total NAVAU$5.9bn/ US$5.4bn Infrastructure NAV amounts exclude undrawn investor commitments and feeder fund cash holdings
Page 12 IFM Australian Infrastructure Fund assets InvestmentDescription Year Acquired Location IFM Interest Renewable electricity generation 1996 Australasia, Chile and Brazil 100% Airport1997 VIC 23.7 % Airport1997 QLD 18.9% Airport1997 WA 3.2% Toll road1998 NSW 15.4% Toll road2000 NSW 14.4% Airport2001 NT 77.4% Airport2002 SA 12.8% Electricity generation 2003 / 2008 VIC 100% Transport hub /PPP 2003VIC100% InvestmentDescription Year Acquired Location IFM Interest Water treatment (PPP) 2003NSW70.0% School buildings (PPP) 2003NSW100% Public sector housing (PPP) 2005NSW100% Law courts (PPP)2006WA100% Aged care facilities (PPP) 2006VIC100% Defence Headquarters (PPP) 2008ACT100% Seaport2010QLD26.7% Seaports2013NSW35.1%
Page 13 IFM International Infrastructure Fund – portfolio (1)Dalkia Polska investment was made in 2010 following on from the 2006 acquisition of Dalkia Łódź CONTINENTAL EUROPE US UK Acquired Acquired Acquired 2010 (1) 2010 DIVERSIFIED PORTFOLIO OF STABLE ASSETS ACROSS EUROPE AND THE US
Page 14 Global Infrastructure Team PIONEER GLOBAL MANAGER Leading global infrastructure manager Specialists in Australia, Europe and North America Long-term, like minded investor base with a dependable capital source 18 year track record has returned 12.1% p.a. since inception* Established portfolio diversified across industry sectors and geographical regions Open-end fund structure aligned to the long-term characteristics of the asset class Strong deal pipeline both locally and globally 26 direct equity investments 39 board seats Real time insight and information *IFM Australian Infrastructure Fund from 1 August 1995 to 30 June 2013 after fees and taxes. Kyle Mangini Global Head of Infrastructure Alec Montgomery Head of Infrastructure – North America Christian Seymour Head of Infrastructure – Europe IFM Infrastructure heads – each with 20+ years infrastructure experience Michael Hanna Head of Infrastructure – Australia
Page 15 IFM manages $14 billion in listed equities split across indexed, enhanced indexed and active products managed by teams of experts, with a robust investment processes, supported by proprietary systems. IFM FUM BY ASSET CLASS ($b)BREAKDOWN OF LISTED EQUITIES INVESTMENTS ($m) Debt 14 Private Equity Infrastructure Equity 16 Listed Equities 14 Experienced investment teams Genuine long term investors with a clear focus Robust investment processes Proprietary systems Track record of long term outperformance Strong focus on ESG As at 30 June A closer look at IFM Listed Equities
Page 16 Listed Equities – Passive Full replication to benchmark with targeted enhancements (e.g. arbitrage opportunities, IPOs, placements, flows, off market buy backs) Funds designed to pool investors with similar tax profiles (tax exempt, superannuation, tax paying) Focus on net returns to investors (after fees and tax) Consistent long-term performance STRONG, EXPERIENCED TEAM Gavin Petrie Investment Associate 10 years experience Laurence Irlicht Investment Director, Listed Equities 16 years experience Aidan Puddy Executive Director, Listed Equities 20 years experience Travis Hooper Associate 12 years experience IFM Proxy & Engagement Committee (PEC) Clyde Haldane (Chair), Aidan Puddy, Neil Carter, Mark Zirnsak, Azhar Abidi
Page 17 Listed Equities – Strategic STRONG, EXPERIENCED TEAM Identify companies that stand out as superior capital investors Unique selection criteria – Return on Equity (RoE) Impulse plus quality overlay drives buy/sell decisions True ‘buy and hold’ strategy – genuine long-term investors with a clear focus Concentrated, high conviction portfolio (number of stocks typically in range of 15 to 25) Strong focus on ESG Davina Machin Investment Director, Listed Equities 17 years experience Clyde Haldane Executive Director, Listed Equities 24 years experience Travis Hooper Associate 12 years experience IFM Proxy & Engagement Committee (PEC) Clyde Haldane (Chair), Aidan Puddy, Neil Carter, Mark Zirnsak, Azhar Abidi
Page 18 Listed Equities – Small Caps LEADING TEAM WITH STRONG TRACK RECORD Highly experienced team with excellent track record Style agnostic Australian small caps portfolio Focussed and rigorous fundamental research Disciplined portfolio construction process Strong alignment of interests Jim Copland Investment Director, Listed Equities – Small Caps 13 years experience Neil Carter Executive Director, Listed Equities – Small Caps 15 years experience Matt Griffin Associate 4 years experience Alex Bibani Investment Analyst 9 years experience IFM Proxy & Engagement Committee (PEC) Clyde Haldane (Chair), Aidan Puddy, Neil Carter, Mark Zirnsak, Azhar Abidi
Page 19 A snapshot of IFM Debt Investments... across the debt risk/reward spectrum via a specialist team with deep experience across the debt spectrum. Experienced debt specialists Recognised, niche credit market players Superior, rigorous bottom-up credit skills within a global macro economic environment Disciplined process Strong access to deal flow through our network Track record of long term outperformance Aligned interests – IFM’s ‘raison d’être’; to create products that make sense and are good value for our investors IFM FUM BY ASSET CLASS ($bn)BREAKDOWN OF DEBT INVESTMENTS ($bn) * Across one fund and seven mandates FUM figures at 30 June 2013 Figures may differ due to rounding. IFM manages over $14bn of debt...
Page 20 A closer look at Debt Investments SOLID BLEND OF EXPERIENCE AND SKILLS Deep market knowledge Strong networks providing access to deal flow Robust process with strong credit disciplines Product range that covers the risk / reward spectrum CashVanillaCredit Low return High liquidity High return Low liquidity Long-term assets suited to investors with a long- term outlook Robin Miller Global Head of Debt Investments 25 years experience Bruce Potts Investment Director 30 years experience Scott Barker Executive Director 18 years experience Kevin Lewis Investment Director 22 years experience Simon Tung Associate Director 17 years experience Darren Pasco Associate Director 17 years experience Lillian Nunez Associate Director 19 years experience Nick Zannis Associate 9 years experience Hiran Wanigasekera Associate ((UK) 8 years experience Lloyd Mitchell Investment Analyst 6 years experience David Cooper Executive Director (UK) 17 years experience Huiyi (Stella) Wang Investment Analyst 7 years experience Hannah Lindberg Investment Analyst ((UK) 6 years experience Linda Cunningham Investment Director 19 years experience
Page 21 A closer look at IFM Private Equity IFM manages $2 billion in Private Equity across Australian and international private equity managed by an expert team. Experienced team Nine private equity specialists Focus on growth and transformation Active, engaged, niche investor Global network In-house legal and tax expertise BREAKDOWN OF PRIVATE EQUITY Commitments A$Bn Debt Private Equity Listed Equities Infrastructure IFM FUM BY ASSET CLASS $Bn, 30 June 2013 * FUM figures at 30 June 2013.
Page 22 Private Equity Multiples focus rather than internal rate of return Intensive ‘Bottom Up’ Due Diligence Alignment Active Engagement ‘for the life of investment’ Global Hurdle Conviction investing Steven Lipchin Head of Private Equity 26 years experience Gareth Adams Investment Director 19 years experience James Leos Investment Director 20 years experience Anna Morrison Investment Director 15 years experience Shane McKenzie Associate 15 years experience Sean Loke Associate 12 years experience STRONG TRACK RECORD IN PRIVATE EQUITY INVESTING Wayne Phillips Investment Director 16 years experience
Page 23 Our investment results are strong - investment results to 30 June 2013
Page 24 Integral to our approach is a strong focus on responsible investment In-house expertise 1 External representation 3 Board reviews Engagement 2 Workplace safety Carbon footprint Dedicated Director, Sustainability and Responsible Investment appointed to deliver on environmental, social, governance issues in acquisitions, and in the management of the existing assets and portfolios. Speaker at the PEI Responsible Investment Forum (New York) and moderating the PRI infrastructure webinar in June The PRI has showcased IFM as a “best practice” case study in its 2010 Report on Progress IFM’s Director Responsible Investment is the Chair of the PRI infrastructure Steering Committee and we have been a signatory since Other members of the committee include PGGM (Holland), ATP (Denmark), Caisse des Depots (France) and Capital Innovations (US). IFM is a member of the Investor Group on Climate Change (IGCC). In 2010, IFM worked with the IGCC to prepare its submission to the Australian Federal government on its redesign of the renewable energy target. Engagement has become genuine dialogue rather than a confrontation that does and is continuing to bring about improvement in ESG issues. Mark Zirnsak, an independent expert for IFM on ESG matters, is currently a Director, Justice and International Mission Unit, Synod of Victoria and Tasmania, Uniting Church in Australia.. Mark has been responsible for engagement with companies to ensure compliance with the Synod Ethical Investment Policy since 2004.
Page 25 Summary COLLECTIVE EXCELLENCE FOR INDIVIDUAL INVESTORS Unique ownership model offering alignment of interests Experienced, focused and specialist investment teams with a strong track record Long-term strategic investment approach across all asset classes Rigorous disciplined processes that marry investment and market knowledge Strong, global networks Focus on responsible investment
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