Jul 19 2013

IFM results: a strong year for growth and returns

Around $5 billion has been added to the retirement savings of millions of Australians as a result of a year of strong investment returns for Industry Funds Management (IFM).

Releasing its 2012-2013 end of financial year results, IFM’s Chief Executive, Brett Himbury, said the strong year of investment returns resulted from a pure focus on institutional investment.

“A key feature of the last year has been our strong returns, which have led to increased global support for IFM, which in turn has enhanced our capacity to provide scale benefits to our clients. Ultimately this results in still further enhanced returns.“

“This virtuous circle is now being leveraged to great effect by the organisation and we expect this to accelerate in the years ahead.”

In the last year IFM deployed over $3 billion in infrastructure equity through two transactions - Manchestor Airport Group and Ports Botany & Kembla, and increased its stake in Melbourne & NT airports. 

IFM has consolidated to become one of the largest infrastructure investors in the world.  And for investors, the outperformance of IFM’s Australian Infrastructure Fund means that $100,000 invested in it 18 years ago would now be returning $777,000, compared to a return of $480,000 from the share market for the same investment.[1]

Highlights of IFM’s end of financial year results include:

  • Funds under management growth of 34% from $34 billion to $46 billion. This is more than double the assets under management growth of the overall Australian superannuation market.
  • Strong fundraising of $6.9 billion.
  • Growth of fundraising outside Australia - from nothing two years ago to almost $2 billion in the North American market last year. (Pension funds are choosing IFM because of its unique ownership model and pure focus on investment returns).
  • Debt capability has seen strong inflows this year of $3.2 billion. Debt continues to outperform across all time periods. AFIF outperformed its benchmark by 6.31% p.a. over the last year.
  • Continued after tax outperformance in passive equities of 1.2% p.a. since inception.
  • Infrastructure outperformance. IFM’s Australian Infrastructure Fund has returned 12% p.a. over the last 18 years, outperforming the Australian share market by 3% p.a. over the same timeframe.

[1] based on net returns for AIF of 12.13% p.a versus gross returns ASX200 Accumulation Index 9.15% p.a.