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IFM in Samsung tie-up to create international infrastructure fund

IFM will manage Korean infrastructure investments.

IFM will manage Korean infrastructure investments. Photo: Getty

Industry fund umbrella investment group IFM Investors has joined forces with Korea’s Samsung Asset Management to form a $US480 million ($A642 million) infrastructure debt fund.

The Samsung Asset Management/IFM Investors infrastructure debt fund will primarily target prime infrastructure assets in North America, Europe and Australia and is restricted to bonds covered by an A- or higher   sovereign credit ratings.

It plans to aim its investments into five main sectors – Public Private Partnerships (PPPs), power, renewables, utilities and mid-stream, where investment risk is minimised through government subsidies and long-term contracts.

Four Korean institutional investors have contracted to contribute a combined US$480 million in the fund. IFM, an experienced infrastructure investor, will manage the fund with Samsung.

Koo Sung-hoon, President and CEO at Samsung Asset Management, said there are lots of potential investment opportunities for the fund. “With ageing infrastructure in developed markets needing replacement, and tougher regulations on environment; as well as increasing demand for infrastructure in emerging countries with growing populations and rapid urbanisation, the global infrastructure market is expected to continue to grow.”

“This fund brings together the expertise of IFM Investors in this market and the investment capability of Samsung Asset Management,” he added. “We expect with this collaboration to be able to offer stable returns to local institutional investors who are further diversifying their investments to overseas alternatives amid the current low interest and low growth investment environment.”

Brett Himbury, CEO of IFM Investors, said: “Being owned by super funds, IFM Investors’ infrastructure debt investment philosophy is aligned with institutional investors’ objectives. With our solid, long-term performance and a philosophy built on over 20 years of experience in infrastructure investment, we are excited to announce the global infrastructure debt fund for institutional investors in Korea together with Samsung Asset Management, and we look forward to a continued long-term commitment to Korea.”

“Korea is Australia’s third largest trading partner and this collaboration in financial services is a logical extension of the strong relationship that exists between our two countries,” Mr Himbury added.

“It also benefits Australian investors by providing an additional source of capital from like-minded institutional investors, further increasing access to global investment opportunities and adding to member returns,” Mr Himbury said.

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