IFM Investors and Samsung partner for infrastructure fund

An Australian institutional investment manager is partnering with Korea-based Samsung Asset Management to form a global infrastructure debt fund.

The US$480 million fund will be jointly managed by IFM Investors and Samsung Asset Management to invest in overseas infrastructure debt assets on behalf of Korean institutional investors.

Samsung Asset Management president and chief executive Koo Sung-hoon said he welcomes the partnership with IFM in a time when the global infrastructure market is expected to grow.

"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," Sung-hoon said.

The chief executive added he expects the collaboration to offer stable returns to local institutional investors who are "diversifying their investments to overseas alternatives amid the current low interest and low growth investment environment."

The fund will primarily target infrastructure assets in countries in North America, Europe and Australia with minimum A- sovereign credit ratings. It will invest in 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 a combined US$480 million in the fund.

IFM Investors chief executive Brett Himbury said the partnership was an extension of the strong trading relationship that exists between Korea and Australia which would benefit Australian investors.

"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," Himbury said.

"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.

"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."

IFM Investors is owned by 28 Australian not-for-profit superannuation funds and currently has A$81 billion under management.

Read more: AustraliaKoreaIFM InvestorsKorea-based Samsung Asset ManagementBrett HimburyEuropeKoo Sung-hoonNorth AmericaPublic Private
Editor's Choice
ALEX BURKE
AMP Capital has appointed a new head of its institutional and corporate business.
ALEX BURKE
AustralianSuper appointed a new chair for its investment committee.
ALEX DUNNIN
A Rainmaker study of extra benefits and features being offered by super funds in Australia reveals that technology and communication-oriented features are the most active area of product development.
ALEX BURKE
An $81 billion international investment manager took the majority stake in a large Australian provider of specialist medical software.
Videos
Brought to you by
31 JAN 2017
Investors who try and predict macroeconomics as a source of alpha rather than focusing on long term trends will suffer in the long term. AXA Investment Managers' head of Framlington Equities Asia, Mark ...
Get it Daily
Keep up to date, don't be the last to know! Get the Financial Standard Daily Newsletter.
SUBSCRIBE
Products
Pocket investment guides featuring adviser case studies and a glossary.
Investing trends and strategies from the industry’s thought leaders.
Putting the spotlight on investment products that matter.
Expert Feed
Andy Marshall
FS ADVICE
Rethinking client engagement
Financial advisers who take the time to understand their clients' personality, emotional intelligence and learning styles stand a better ...
Stephen Fay
FS SUPER
Landscape changes with potential for super implosion
Changes to default superannuation outlined by the recent Productivity Commission report have potential to fundamentally alter the landscape ...
Christopher Page
FS PRIVATE WEALTH
Redefining the family office
While the family office model has traditionally been the preserve of the ultra-rich, this may be changing very soon. Last week, Findex ...
Michelle Baltazar
FS MANAGED ACCOUNTS
Hitting the mark
Ten years from now, every financial adviser in the country will be offering their client a managed account solution. It may happen ...
Featured Profile
Professional Subscription for $295
(inc GST) for 1 year.
SUBSCRIBE
OTHER PUBLICATIONS
FS Advice
The Australian Journal of Financial Planning.
Get the free iPad app
Download the Financial Standard iPad app for FREE.
DOWNLOAD
Link to something HNzu093S