“It is a fascinating system, and in some ways it’s an incredibly simple one. But what’s grown from it is one of the most sophisticated institutional investment environments in pension systems around the world.”
In this episode of Going Long, Sarah Williamson and David Neal discuss the history and evolution of IFM Investors, the importance of stakeholder engagement for infrastructure investments, adopting a “profit-to-member” philosophy, and more.
- Overview of the Australian superannuation pension system and how it is structured to give individual choice (5:46)
- How the “profit to member” concept drives investment decisions at Australian pension funds (9:32)
- The origin story and investment philosophy behind IFM Investors (11:45)
- Why an “open-ended” fund structure allows for a longer investment time horizon (18:00)
- The importance of considering all stakeholders, including local communities, when making infrastructure investments (16:01)
- How institutional investors can promote solutions for major issues like climate change (24:33)
- Advice for designing pension systems globally that focus on member outcomes (31:41)
About David Neal
David is IFM Investors’ Chief Executive, responsible for executing the firm’s strategy and delivering strong results for IFM Investors’ clients, shareholders and staff. David leads IFM’s global business, with nine offices and four investment teams: Infrastructure, Debt Investments, Listed Equities and Private Equity. David joined IFM Investors from the Future Fund, Australia’s sovereign wealth fund, which he joined in 2007 as its inaugural Chief Investment Officer before becoming the Chief Executive Officer in 2014. At the Future Fund, he established the investment team and built and designed the Fund’s investment model. Prior to joining the Future Fund, David spent 15 years with Willis Towers Watson, where he started his career in the UK. He went on to establish and lead the firm’s investment consulting business in Australia. As Head of Investment Consulting at Willis Towers Watson Australia, David led the team providing advisory services to the Future Fund when it was established in 2006.
About IFM Investors
IFM Investors was established over 25 years ago with the primary goal of investing, protecting, and growing the long-term retirement savings of working individuals. Owned by a consortium of Australian pension funds, the organization manages A$215 billion as of June 30, 2023. As a signatory to The United Nations-supported Principles for Responsible Investment, IFM actively engages on ESG (Environmental, Social, and Governance) issues with the companies in which it invests, aiming to bolster their overall performance while minimizing investment risks. Operating globally, IFM has offices in Melbourne, Sydney, London, Berlin, Zurich, Amsterdam, Milan, Warsaw, New York, Hong Kong, Seoul, and Tokyo. Its investment portfolio spans infrastructure, debt, listed equities, and private equity assets. For additional details, please visit www.ifminvestors.com.
