IFM Investors Responsible Business Report 2018

Chief Executive’s note

It is with great pride that I present to you the first IFM Investors Responsible Business Report. In this time of global political and economic turbulence, and an environment of increasing mistrust in financial institutions, it is essential that we provide greater transparency for our stakeholders and wider community.

As asset owners, pension and superannuation funds, insurers, and sovereign funds are experiencing the most challenging environment in decades as the focus shifts to reducing fees and increasing superior net returns. Adding to these pressures to gain the best possible returns is the growing expectation these goals be achieved in a way that is responsible, respectful and ethical.

Established by all-profits-to-members Australian superannuation funds, IFM Investors focuses on delivering these superior net investment returns to members of superannuation and pension funds, and like-minded institutional investors around the world. IFM Investors’ unique ownership drives an alignment with investor objectives, a commitment to investing for the long term, and respect for labour rights and environmental and social responsibility.

How we operate in these changing times is how we will be judged by our investors, stakeholders and ultimately the more than 15 million working people around the world who our investors represent. This report provides an overview of our approach to ensuring our investments, activities and corporate behaviour meet client and public expectations. It also outlines how this behavior contributes to our performance over the long term.

We have an important role to play as stewards of working peoples’ capital, and as a member of the global financial system, to demonstrate leadership in the way we invest. IFM Investors looks to the future and considers the impact of our investments on the local community, wider society and the environment. That is why responsible investment considerations are embedded into all aspects of our decision-making and investment processes. However, investing and operating responsibly is about more than good processes and systems. Our employees embody our philosophy and I acknowledge each and every one of them for their individual contribution and the collective force they represent in achieving strong returns and impacting society for the better.

The combination of our uniquely aligned ownership model, our like-minded long-term institutional investor clients, and dedicated global team, has delivered excellent returns to our investors and strong growth across the board.

In a challenging environment, it is gratifying to lead a business that is truly able to focus on returns for working people and positively shape our world.