IFM opens up shop in Hong Kong
IFM Investors moves to Hong Kong. Photo: Getty
IFM Investors has broadened its global footprint by opening an office in Hong Kong.
IFM Investors chief executive Brett Himbury says a presence in Hong Kong will allow the firm to increasingly meet the global appetite of institutional investors and broaden it’s global presence.
“Our investors are increasingly seeking opportunities in Asia and an office in Hong Kong will allow us to continue to globalise our investment capabilities. We will work closely with regulators and professional investors in Hong Kong to meet regulatory requirements and investor needs.”
The new subsidiary, IFM Investors (HK) Limited, has recently been granted an operating licence from the Securities and Futures Commission of Hong Kong.
The Hong Kong presence will enhance it’s ability to invest in Asia and provide services to global investment operators who want better access to international markets. IFM Investors, through its Active Equities Team has recently launched three new investment strategies, including an Asia-Pacific Market Neutral capability. This capability has the right to invest in Hong Kong as well as Australia, Korea, Taiwan and Singapore.
IFM Investors now has offices in Melbourne, Sydney, New York, London, Berlin, Tokyo and Hong Kong, with more than 40 per cent of the firm’s investment professionals based outside Australia.
IFM Investors have seen funds under management jump 5.7 per cent in recent months to $74 billion. That follows a rise of 22 per cent in the 12 months to June 30, 2016 which included $7 billion in new investment funds, about 50 per cent of which came from foreign investors.
The strong performance is in part a result of good returns in IFM’s stable of alternative investments in areas like private equity, direct lending and infrastructure.
IFM has six of the top 10 US pension funds on board, says Brett Himbury.
It recently bought a majority stake in NSW power transmission group Ausgrid for $16.2 billion in partnership with Australia’s largest super fund, AustralianSuper.
The pair are believed close to finalising arrangements for refinancing 100 per cent of Ausgrid’s $12 billion of debt. The 14-strong consortium of debt providers includes at least three of the big four banks and overseas players like BNP Paribas, Japan’s Mitsui and SMBC.
The sale, Australia’s largest to date this year, is on track to close in early December and perhaps as early as this week. The deal valued Ausgrid equity at $8.7 billion with IFM and AusSuper paying about $4.6 billion for their 50.4 per cent holding.
IFM invests for a range of investors including Australian industry super funds and overseas investment trusts. Of the 197 investors using its services, 130 are foreign based. These include six of the top 10 public pension funds in the US.
IFM invests on behalf of 19 million pension fund members globally.
“Our clients represent some of the largest, most respected institutional investors across global sovereign funds, public pension funds, endowments, global insurers and of course some of the most significant corporate, industry and government funds in Australia,” Mr Himbury said.
“In many instances these global clients have made their first commitment to infrastructure equity, infrastructure debt and indeed discrete allocations to Australian listed equities via IFM.”
“These investments have been made through funds, mandates and investment partnerships reflecting IFM’s desire and capacity to balance our investment expertise with the diverse yet complementary structures to better support the unique needs of sophisticated investors globally,” he said.
IFM bought into NSW power group Ausgrid. Photo: AAP
“IFM is showing that it is possible to go into overseas markets and provide great products which can compete internationally.”
In an interview with The New Daily earlier this year, Mr Himbury urged the federal government to get more creative in encouraging investments into major projects like roads, airports, hospitals and other large-scale assets.
At the time, he pointed to an opportunity to invest in greenfield infrastructure projects under a model in which investors would share both the rewards and risks under agreed return assumptions.
Infrastructure equity now makes up $35 billion of IFM’s overall investments, with $15 billion invested locally and $20 billion offshore.
The group has also over $20 billion in infrastructure debt, often made to green fields infrastructure facilities such as hospitals. Of this, $15 billion is local debt, while $5 billion is lent offshore.
