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IFM Investors outperformance results in global fee rebate, challenges others to follow suit

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Global institutional fund manager IFM Investors today announced a fee rebate to clients globally delivering lower costs and higher net returns to millions of working people in 19 countries.

IFM Investors’ Chief Executive, Mr. Brett Himbury said the initiative was a result of the firm’s unique ownership model and purpose, and was driven by product outperformance.

“While other fund managers are looking to preserve margins in increasingly competitive markets, IFM Investors continues to innovate as it builds its position as a leading provider of net returns to institutional investors globally.

“Our unique ownership structure and the strength of our performance provides us the flexibility to implement a capital management program that can rebate fees to investors, invest in scale and provide the flexibility to retain funds to seed new investment capabilities,” Mr. Himbury said.

The fee rebate is equivalent to 7.5% of annual net recurring investment management fees paid by IFM’s institutional investors in 19 countries. 1

Mr Himbury said that 89% of products and mandates across four asset classes, infrastructure, debt, listed equities and private equity, were meeting or outperforming client objectives on a rolling five-year basis, after fees and taxes.

IFM Investors will continue to invest in expanding its capabilities to support its clients’ focus on investing globally and will retain funds to ensure a resilient financial balance sheet position, given the range of uncertainties across global markets.

“We will invest in our business to provide new and extended capabilities to our investors globally, growing the scale and profitability of IFM Investors to benefit our investors.

“We want to send a very clear message to our investors, and indeed, our competitors, we are determined to set world-class standards that genuinely put investors first,” Mr. Himbury said.

1 Investment management fees for the period ended 30 June 2018.