Credit

IFM Investors’ credit approach is aligned to our firm-wide philosophy. We are patient, long-term investors, combining extensive bottom-up analysis with top down macro elements and a strong focus on risk.

Our view is that credit can be a compelling opportunity, offering attractive returns and diversification benefits. We also believe that successful credit management requires significant resources, fundamental research, specialist skills and ongoing monitoring. We judge debt from a conservative position and apply strong credit disciplines underpinned by rigorous analysis. We internally rate all investments regardless of whether they carry an external credit rating, drawing on our analytical resources, investment expertise and extensive business infrastructure.





Infrastructure Debt

IFM Investors’ infrastructure debt approach is aligned to our firm-wide philosophy. We are patient, long-term investors, combining extensive bottom-up analysis with top down macro elements and a strong focus on risk. Our disciplined approach is well suited to our specialisations in lower liquidity credit, including infrastructure debt.

Infrastructure debt is a form of high quality credit that can yield stable income, return of capital and reliable real returns. It can be considered as an alternative to traditional defensive asset classes such as sovereign and corporate bonds.

Our approach to infrastructure debt is characterised by:

  • Prudent, risk conscious focus
  • Investment decision making based on intensive, asset specific fundamental research
  • Value is sought opportunistically and we seek attractive market mispricing and/or illiquidity premiums.

We are well positioned to originate transactions and, as appropriate, partner in syndicates with like-minded investors. As we are long-term investors focused on maximising risk-adjusted returns, we strive to only invest in environments that are conducive to these goals.



Core Bond

IFM Investors’ Core Bond strategy is designed to closely track the risk and return profile of the Bloomberg AusBond Composite Bond Index over rolling three-year periods.

A passive investment management approach efficiently reproduces the index’s risk and return characteristics. Rigorous risk controls manage portfolio duration, yield curve position, sector allocation and issuer exposure.

The strategy uses sampling and optimisation tools to track the Index. A filter of index constituents creates a buy list based on liquidity considerations. Portfolio optimisation identifies proposed investments, which are monitored by both pre-trade and post-trade compliance.





Cash

IFM Investors is driven by a long-term investment philosophy. While the time horizon for our cash strategy is shorter than other products, we adhere to our firm-wide approach to seek out fundamental value.

The cash process is supported by strong credit disciplines underpinned by rigorous analysis. We apply top-down macro analysis, bottom-up security and company analysis as well as a review of market dynamics.

We aim to add value across the bank bill swap curve, through duration management and active credit selection, while focusing on liquidity appropriate to cash strategies.