Industry Funds Management (IFM), the $30 billion fund manager that is owned by 32 not-for-profit superannuation funds, will return money to its investors equal to 12.5 per cent of its annual fees because its investment products have exceeded their return targets.
The rebate will apply to base management fees calculated on funds under management at the end of October. IFM says 88 per cent of its products have met or exceeded their benchmarks in the year to September 30.
Melbourne-based IFM says the rebate will be paid in cash from December 1. IFM chief executive Brett Himbury declined to say how much money will be returned to its investors.
“We’re growing rapidly and enjoying the benefits of scale,” says Himbury. There are 130 people employed by IFM that invest in infrastructure, private equity, Australian shares and bonds, as well as non-Australian stocks and bonds.
The firm is conducting a global pricing review to “create a greater net benefit for investors”.
“We’re in the early stages of the review but it will definitely lead to a more competitive pricing structure,” says Himbury. “We will remain an institutional manager.”