An Overview of IFM
September 2013
Today’s discussion
About the IFM Global Group
A profile of our asset classes
Page 2
About the IFM Global Group
IFM manages $46 billion . . .
. . . across four asset classes . . .
. . . in three of the four largest
pension markets in the world.
IFM AUM BY ASSET CLASS
$bn, 30 June 2013
Private
Equity
2
$46b
Debt
14
Infrastructure
16
Listed Equities
14
* FUM figures at 30 June 2013.
Page 3
About the IFM Global Group
We do this for a range of
leading wholesale investor
brands that have a long term
investment focus.
30 of them are shareholders,
which provides for a unique
ownership structure . . .
. . . and a philosophical
alignment that ultimately
focuses on the member investor.
 Superannuation funds
 Non-super investment funds
 Government authorities
 Universities
 Not-for-profit foundations
 US Taft-Hartley funds
 US endowment funds
Page 4
IFM has an impressive 20 year history
Page 5
CEO and Board
Chief Executive
Brett Himbury joined IFM in April 2010. Brett’s experience spans 30 years in the financial services industry. Most recently he
was Managing Director of Tyndall Investment Management, the funds management business of Suncorp. Prior to that he held
a range of leadership roles across the Funds Management and Financial Planning sectors, and with this diversity of
experience brings a strong track record and unique insight to IFM.
Board Members
Director
Director
Director
Chairman
Director
Director
Garry Weaven
Brian Pollock
Michael Migro
Murray Bleach
Glenn Bunney
Linda Rubinstein
Chair and Founder of IFM,
Chair of Pacific Hydro,
Director of Members Equity
Bank. Appointed to the
Federal Government’s
Superannuation Advisory
Committee in 2008, and to
the Australian Securities
and Investments
Commission’s External
Advisory Panel in 2009.
Assistant Secretary of
ACTU in the 1980s.
Director of Industry Super
Holdings, Members Equity
Bank, AE Smith & Son and
Chair of the Macquarie Real
Estate Equity Fund series of
companies. Former chair of
Becton Property Group and
former director of Programmed
Maintenance Services. Former
Head of Property Investment
and former Executive Director
Property and Lending at
National Mutual. Former
Chairman of Clive Peeters and
Former Chairman of Industry
Super Property Trust.
Head of Business Strategy (BT
Funds Management), Joint
Managing Director (Westpac
Financial Services), CEO
(Perpetual Funds Management
and Principal Global Investors
Australia), and most recently in
the USA as COO (Principal
Global Investors) and President
and Chief Operating Officer
(Post Advisory Group LLC).
Also a Director of Industry Fund
Services and the Investment
Committee of the Steve Waugh
Foundation Australia.
Former Head of North
America for Macquarie
Bank (US) and former
Global Head of
Macquarie's Private
Placements Group (Aus).
Chief Executive in
industrial and human
services, Trustee Director
with HESTA, Director of
ISPT and IGIPT. Member
of the IFM IAB. Director
and Board office on
several not-for-profit
Boards at State, National
and International levels.
Former Chair of the
Australian Government
Employees
Superannuation Trust
(AGEST). Former union
nominee to the board of
HOSTPLUS and ACTU
nominee to the Board of
Cbus. Has part-time role
with Holding Redlich as
Director of the firm’s
Pro-Bono practice.
Page 6
Collective excellence for individual investors
IFM’s Strategic Goals

Meet or exceed return objectives across all products over rolling five year period

Double our preferred partners with like minded parties across multiple markets in five years

Grow profit to reinvest in capabilities

Retain, develop and motivate people who achieve excellence
IFM’s Cultural Foundations

Prioritise Investors

Achieve Excellence

Inspire Innovation

Respect Everyone

Lead by Example
Page 7
The future – challenging, exciting... potentially exceptional

Volatile, generally low growth investment markets

Deliver superior performance across all asset classes

Build scale and commensurate investor benefits by selectively diversifying

Continue to innovate to meet evolving investor needs

−
Private Equity
−
Private Assets
−
Global Infrastructure Debt
−
Australian Infrastructure
−
Specialised Small Caps
Retain and leverage our unique model of ownership.
Page 8
Leadership in Infrastructure, Listed Equities, Debt and Private Equity
About the IFM Global Group
A profile of our asset classess
Page 9
A closer look at IFM Infrastructure
IFM FUM ASSET CLASS AND SECTOR BREAKDOWN
$Bn, 30 June 2013
IFM invests $16 billion in
Infrastructure assets . . .
. . . split across Australian and
international funds in open-end
structures . . .
. . . successfully sourcing, building and
managing a diversified portfolio.
 One of the world’s largest global infrastructure manager
with 26 assets worldwide
 Strong deal pipeline both locally and globally
Private
Equity
2
Debt
 Team of 47 infrastructure professionals in Australia, North
America and Europe
Infrastructure
16
14
Listed Equities
14
44%
Australia
 79 investors with dependable capital sources
56%
International
 18 year track record has returned 12.1% pa (net of fees
and tax) since inception*
 Established infrastructure portfolio diversified across
industry sectors and geographical regions
 Open end fund structure aligned to the long-term
characteristics of the asset class
* IFM Australian Infrastructure Fund from 1 August 1995 to 30 June 2013.
Infrastructure AUM amounts include undrawn investor
commitments and all infrastructure cash holdings
Page 10
39 board seats on 26 assets across a range of industry sectors
Australian Infrastructure Fund
18 assets
International Infrastructure Fund
8 assets
Electricity
Generation
14.6%
Seaports
27.0%
Airports
33.1%
Telecommunica
tions
9.2%
Pipelines &
Related
Infrastructure
11.5%
Airports
28.9%
Toll Roads
5.4%
Renewables
25.4%
Current Assets
Total NAV
Electricity
Transmission &
Distribution
14.1%
Electricity Generation
2.7%
Social Infrastructure
6.4%
18
AU$6.6bn
Steam &
Hot Water
Supply
8.4%
Current Assets
Total NAV
Water &
Wastewater
14.7%
8
AU$5.9bn/ US$5.4bn
Infrastructure NAV amounts exclude undrawn investor commitments and feeder fund cash holdings
Page 11
IFM Australian Infrastructure Fund assets
Investment
Description
Year
Acquired
Location
IFM
Interest
Renewable
electricity
generation
1996
Australasia,
Chile and
Brazil
Airport
1997
Airport
1997
Description
Year
Acquired
Location
IFM
Interest
100%
Water treatment
(PPP)
2003
NSW
70.0%
VIC
23.7 %
School buildings
(PPP)
2003
NSW
100%
QLD
18.9%
Public sector
housing (PPP)
2005
NSW
100%
Law courts (PPP)
2006
WA
100%
Aged care
facilities (PPP)
2006
VIC
100%
Defence
Headquarters
(PPP)
2008
ACT
100%
Seaport
2010
QLD
26.7%
Seaports
2013
NSW
35.1%
Airport
1997
WA
3.2%
Toll road
1998
NSW
15.4%
Toll road
2000
NSW
14.4%
Airport
2001
NT
77.4%
Airport
2002
SA
12.8%
Electricity
generation
Transport hub
/PPP
2003 / 2008
2003
VIC
VIC
Investment
100%
100%
Page 12
IFM International Infrastructure Fund – portfolio
DIVERSIFIED PORTFOLIO OF STABLE ASSETS ACROSS EUROPE AND THE US
US
(1)
CONTINENTAL
EUROPE
UK
Acquired
Acquired
Acquired
2007
2004
2010(1)
2008
2006
2010
2006
2013
Dalkia Polska investment was made in 2010 following on from the 2006 acquisition of Dalkia Łódź
Page 13
Global Infrastructure Team
PIONEER GLOBAL MANAGER
IFM Infrastructure heads – each with
20+ years infrastructure experience
Kyle Mangini

Leading global infrastructure manager

Specialists in Australia, Europe and North America

Long-term, like minded investor base with a dependable
Global Head of Infrastructure
capital source

18 year track record has returned 12.1% p.a. since
inception*
Michael Hanna
Head of Infrastructure – Australia

Established portfolio diversified across industry sectors and
geographical regions

Christian Seymour
Head of Infrastructure – Europe
Alec Montgomery
Head of Infrastructure – North America
Open-end fund structure aligned to the long-term
characteristics of the asset class

Strong deal pipeline both locally and globally
26 direct
equity
investments
39 board
seats
Real time
insight and
information
*IFM Australian Infrastructure Fund from 1 August 1995 to 30 June 2013 after fees and taxes.
Page 14
A closer look at IFM Listed Equities
IFM manages $14 billion in
listed equities . . .
IFM FUM BY ASSET CLASS ($b)
Private
Equity
. . . split across indexed, enhanced
indexed and active products . . .
BREAKDOWN OF LISTED EQUITIES INVESTMENTS ($m)
Passive
13,555
Listed Equities
14
 Experienced investment teams
 Genuine long term investors
with a clear focus
2
Debt
14
. . . managed by teams of experts,
with a robust investment processes,
supported by proprietary systems.
Strategic
307
 Robust investment processes
 Proprietary systems
Infrastructure
Equity
16
Small Cap
97
 Track record of long term
outperformance
 Strong focus on ESG
As at 30 June 2013.
Page 15
Listed Equities – Passive
STRONG, EXPERIENCED TEAM
Aidan Puddy
Laurence Irlicht
Executive Director, Listed
Equities
Investment Director, Listed
Equities
 20 years experience
 16 years experience
Travis Hooper
Associate
 12 years experience
Gavin Petrie

Full replication to benchmark with targeted enhancements
(e.g. arbitrage opportunities, IPOs, placements, flows, off
market buy backs)

Funds designed to pool investors with similar tax profiles
(tax exempt, superannuation, tax paying)

Focus on net returns to investors (after fees and tax)

Consistent long-term performance
Investment Associate
 10 years experience
IFM Proxy & Engagement Committee (PEC)
Clyde Haldane (Chair), Aidan Puddy, Neil Carter,
Mark Zirnsak, Azhar Abidi
Page 16
Listed Equities – Strategic
STRONG, EXPERIENCED TEAM
Clyde Haldane
Davina Machin
Executive Director, Listed
Equities
Investment Director, Listed
Equities
 24 years experience
 17 years experience

Identify companies that stand out as superior capital investors

Unique selection criteria – Return on Equity (RoE) Impulse plus
quality overlay drives buy/sell decisions

True ‘buy and hold’ strategy – genuine long-term investors with a
clear focus

Concentrated, high conviction portfolio (number of stocks
typically in range of 15 to 25)

Strong focus on ESG
Travis Hooper
Associate
 12 years experience
IFM Proxy & Engagement Committee (PEC)
Clyde Haldane (Chair), Aidan Puddy, Neil Carter,
Mark Zirnsak, Azhar Abidi
Page 17
Listed Equities – Small Caps
LEADING TEAM WITH STRONG TRACK RECORD
Neil Carter
Jim Copland
Executive Director, Listed
Equities – Small Caps
Investment Director, Listed
Equities – Small Caps
 15 years experience
 13 years experience
Matt Griffin
Alex Bibani
Associate
Investment Analyst
 4 years experience
 9 years experience

Highly experienced team with excellent track record

Style agnostic Australian small caps portfolio

Focussed and rigorous fundamental research

Disciplined portfolio construction process

Strong alignment of interests
IFM Proxy & Engagement Committee (PEC)
Clyde Haldane (Chair), Aidan Puddy, Neil Carter,
Mark Zirnsak, Azhar Abidi
Page 18
A snapshot of IFM Debt Investments
IFM manages over $14bn of debt . . .
. . . across the debt risk/reward
spectrum . . .
IFM FUM BY ASSET CLASS ($bn)
. . . via a specialist team with deep
experience across the debt spectrum.
BREAKDOWN OF DEBT INVESTMENTS ($bn)
 Experienced debt specialists
 Recognised, niche credit market
players
Listed
Equity
14
 Superior, rigorous bottom-up
credit skills within a global macro
economic environment
Debt
14
Credit
4.9
Cash
9.3
Infrastructure
(Equity)
16
 Disciplined process
Other
Credit
2.5
Infra
Debt
2.4*
Private
Equity
2
* Across one fund and seven mandates
 Strong access to deal flow
through our network
 Track record of long term
outperformance
 Aligned interests – IFM’s ‘raison
d’être’; to create products that
make sense and are good value
for our investors
• FUM figures at 30 June 2013
• Figures may differ due to rounding.
Page 19
A closer look at Debt Investments
Robin Miller
Simon Tung
Global Head of Debt
Investments
Associate Director
 25 years experience
Scott Barker
SOLID BLEND OF EXPERIENCE AND SKILLS
 17 years experience
Darren Pasco
Executive Director
Associate Director
 18 years experience
 17 years experience
David Cooper
Lillian Nunez
Executive Director (UK)
Associate Director
 17 years experience
 19 years experience
Bruce Potts
Nick Zannis
Investment Director
Associate
 30 years experience
 9 years experience
Kevin Lewis
Investment Director
Hiran
Wanigasekera
 22 years experience
Associate ((UK)

Deep market knowledge

Strong networks providing access to deal flow

Robust process with strong credit disciplines

Product range that covers the risk / reward spectrum
Cash
Vanilla
Credit
 8 years experience
Linda
Cunningham
Huiyi (Stella) Wang
Investment Director
Investment Analyst
 19 years experience
• 7 years experience
Lloyd Mitchell
Hannah Lindberg
Investment Analyst
Investment Analyst ((UK)
 6 years experience
 6 years experience
Low return
High liquidity
High return
Low liquidity
Long-term assets suited
to investors with a
long- term outlook
Page 20
A closer look at IFM Private Equity
IFM manages $2 billion in
Private Equity . . .
. . . across Australian and
international private equity . . .
IFM FUM BY ASSET CLASS
$Bn, 30 June 2013
BREAKDOWN OF PRIVATE EQUITY
Commitments A$Bn
. . . managed by an expert team.
(3 programs
Private
Equity
 Experienced team
International
2
$1.4
Infrastructure
 Focus on growth and transformation
16
Debt
 Nine private equity specialists
 Active, engaged, niche investor
14
(3 programs
Listed Equities
Australia
$1.0
 Global network
 In-house legal and tax expertise
14
* FUM figures at 30 June 2013.
Page 21
Private Equity
STRONG TRACK RECORD IN PRIVATE EQUITY INVESTING
Conviction investing
Steven Lipchin
Wayne Phillips
Head of Private Equity
Investment Director
 26 years experience
 16 years experience
Gareth Adams
Anna Morrison
Investment Director
Investment Director
 19 years experience
 15 years experience
James Leos
Shane McKenzie
Investment Director
 20 years experience
Intensive
‘Bottom Up’
Due
Diligence
Global
Hurdle
Multiples
focus rather
than internal
rate of
return
Associate
 15 years experience
Alignment
Active
Engagement
‘for the life of
investment’
Sean Loke
Associate
 12 years experience
Page 22
Our investment results are strong - investment results to 30 June 2013
Fund/Benchmark
1 year
Since inception
IFM Australian Infrastructure (after fees and tax) – inception Aug ‘95
Obj – 10% pa over rolling three year periods
12.1%
10.0%
12.1%
10.0%
IFM International Infrastructure (after fees and tax) – inception Dec ‘04
Obj – 10% pa over rolling three year periods
14.4%
10.0%
7.5%
10.0%
IFM AFIF Long (including franking, after fees, before tax) – inception Jun ‘99
UBS Australian Composite Bond Index
6.6%
2.8%
7.9%
6.4%
IFM AFIF Short (including franking, after fees, before tax) – inception Jul ‘05
UBS Australian Bank Bill Index
9.6%
3.3%
6.7%
5.2%
IFM Transaction Cash Fund (after fees, before tax) – inception Mar ‘08
UBS Australian Bank Bill Index
3.7%
3.3%
5.0%
4.7%
IFM Strategic Australian Equities Fund (after fees) – inception Jul ‘08
S&P/ASX 200 Accumulation Index
17.5%
22.8%
1.4%
3.3%
IFM Enhanced Indexed Australian Equities Portfolios (after fees) – inception May ‘03
Benchmark – relative in accordance to client mandates
23.6%
23.8%
9.9%
9.6%
IFM Wholesale Small Caps Fund (after fees) – inception Mar ‘12
S&P/ASX Small Ords Accumulation Index
12.4%
-5.3%
-2.9%
-16.0%
IFM Australian Private Equity Fund IV (IRR, after fees, before tax) – inception Feb ’07
S&P/ASX All Ordinaries Accumulation Index
15.9%
20.7%
7.5%
0.9%
IFM International Private Equity Fund III (IRR, after fees, before tax) – inception Oct ‘07
MSCI World ex Australia in USD
4.3%
18.9%
3.7%
0.4%
Page 23
Integral to our approach is a strong focus on responsible investment
1
In-house expertise
2
Engagement
Carbon
footprint
 Dedicated Director, Sustainability and
Responsible Investment appointed to
deliver on environmental, social,
governance issues in acquisitions, and in
the management of the existing assets
and portfolios.
 Speaker at the PEI Responsible
Investment Forum (New York) and
moderating the PRI infrastructure
webinar in June 2011.
 The PRI has showcased IFM as a “best
practice” case study in its 2010 Report
on Progress
Workplace
safety
3
External representation
Board reviews
 Engagement has become genuine dialogue rather than a
confrontation that does and is continuing to bring about
improvement in ESG issues.
 Mark Zirnsak, an independent expert for IFM on ESG matters, is
currently a Director, Justice and International Mission Unit,
Synod of Victoria and Tasmania, Uniting Church in Australia..
Mark has been responsible for engagement with companies to
ensure compliance with the Synod Ethical Investment Policy
since 2004.
 IFM’s Director Responsible Investment is the
Chair of the PRI infrastructure Steering
Committee and we have been a signatory
since 2008.
 Other members of the committee include
PGGM (Holland), ATP (Denmark), Caisse
des Depots (France) and Capital Innovations
(US).
 IFM is a member of the Investor Group on
Climate Change (IGCC) .
 In 2010, IFM worked with the IGCC to
prepare its submission to the Australian
Federal government on its redesign of the
renewable energy target.
Page 24
Summary
COLLECTIVE EXCELLENCE FOR INDIVIDUAL INVESTORS

Unique ownership model offering alignment of interests

Experienced, focused and specialist investment teams with a strong track record

Long-term strategic investment approach across all asset classes

Rigorous disciplined processes that marry investment and market knowledge

Strong, global networks

Focus on responsible investment
Page 25
Contact
IFM Offices
Eddy Schipper
Melbourne
Level 29 Casselden
Executive Director - Business Development
Phone:
+61 (3) 8672 5315
Email:
eschipper@ifm.net.au
2 Lonsdale Street
Melbourne, VIC 3000
Australia
Charles Brooks
Director - Business Development
Phone:
+61 (2) 8076 5230
Email:
cbrooks@ifm.net.au
Lucy Liu
Manager - Business Development
Phone:
+61 (3) 8672 5318
Email:
lliu@ifm.net.au
Sydney
Level 2, 50 Pitt Street
Sydney, NSW 2000
Australia
New York
99 Park Avenue
Suite 1920
www.ifm.net.au
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