IFM Investors saw its fund under management (FUM) rise by 31 per cent to $140.4 billion in financial year 2019, with the company citing an influx of business from growth in the industry super sector.
The company generated a pre-tax statutory profit of $114 million for the year as at 30 June.
Its clientele has also grown, with there now being 396 institutional investors across 22 countries, a 27 per cent increase in numbers from the year before.
IFM managed an additional $22 billion in funds on behalf of global investors’ member beneficiaries during the year.
The investment manager also reported 86 per cent of its products and mandates across all four asset classes – infrastructure, debt, listed equities and private equity – outperformed client objectives on a rolling five-year basis.
IFM Investors chief executive Brett Himbury said the results reflected the effectiveness of the company’s investor-owned model.
“In Australia, as the industry super fund sector has grown, we acknowledge the ongoing trust that industry super funds have placed in IFM Investors to invest an increasing amount of members’ retirement savings, and are pleased that 86 per cent of products and mandates have exceeded their objectives net of fees over five years,” Mr Himbury said.
“In an increasingly challenging economic, geopolitical and investment environment, in which ‘lower for longer’ has emerged as the central returns thesis, investors will increasingly demand skill, value and alignment. In such an environment, we will further invest in our business to provide new and extended capabilities to support our investors in such uncertainty.”
IFM has been independently valued at $1 billion, representing a 23 per cent increase per annum over five years.
Mr Himbury added the investor has had a focus on ESG values, in the interest of delivering long-term returns and meeting community expectations.
IFM was established more than 20 years ago and is owned by 27 major pension funds. It has nine offices across the US, the UK, Europe, Asia as well as Melbourne and Sydney.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].