Indexed Australian Equities Fund

IFM offers a range of indexing solutions and frequently works with investors to tailor portfolios to their needs.

IFM’s Flagship Indexed Australian Equities Fund is tightly benchmarked against the S&P/ASX 200 Accumulation Index, implementing trading and enhancement strategies to exploit market inefficiencies as they arise.

We utilise a range of diversified enhancements designed to be both independent of each other as well individually low risk. Typical enhancements include trading around index changes, arbitrage strategies, investment in initial public offerings and placements, and strategies that add value on an after-tax basis.

Key features of IFM's Indexed Australian Equities capability

  • Ability to tailor portfolios to the specific needs of individual institutional investors
  • Separate funds designed for clients with various tax categories (i.e. super funds, tax exempt investors, etc) to improve their specific outcomes
  • Portfolios reported on an after-tax basis with after tax benchmarking
  • Strong focus on risk control
  • Proprietary systems designed specifically for our requirements.

Investment approach

Our view is that skilled investment management can add incremental value while controlling risk by exploiting a range of market inefficiencies. As a result our clients benefit from a number of targeted enhancements. Advantages of this approach include:

  • Specialist highly experienced team dedicated to indexed Australian equities
  • Robust investment process with strong risk management
  • The ability to prudently enhance returns through exploiting market inefficiencies
  • Flexible product range to cater for clients with varied strategy requirements.

Investment process

IFM applies systematic indexing techniques complemented by targeted enhancements that are opportunistic, risk controlled and take into account cost and tax outcomes.

Indexation

Our starting position is to apply systematic indexation techniques.

Enhancement identification and analysis

We draw on internal and external research to identify enhancement opportunities such as discounted dividend reinvestment plans or discounted placements. We evaluate these enhancement opportunities on the basis of potential returns, risks and outcomes of the opportunity.

Implementation

Poor implementation can rapidly destroy returns. Our implementation process is built around maximising cost and tax efficiencies using our proprietary portfolio systems.

Monitoring and the control of risk

We closely monitor the portfolio’s overall risk and return profile to ensure there are no unintended risks and that portfolios are managed within mandated guidelines.

Experienced investment team

Aidan Puddy leads IFM’s Indexed Australian Equities, supported by an experienced and stable team. The investment professionals responsible for the Indexed Australian Equities strategy are:

 PositionResponsibilitiesInvestment experience
Aidan Puddy Executive Director Responsible for developing and managing IFM’s Indexed Australian equities strategy 19 years
Laurence Irlicht Investment Director Analysis and management of IFM’s Indexed Australian equities mandates 15 years
Travis Hooper Investment Associate Analysis and management of IFM’s Listed Equities mandates 11 years
Gavin Petrie Investment Analyst Analysis and management of IFM’s Listed Equities mandates 9 years

Responsible investment considerations

IFM takes its obligations towards responsible investment and ESG seriously. This is demonstrated through the recognition of responsible investment issues in our voting record, as well as our Proxy Engagement Committee (PEC). Aidan Puddy, IFM’s Executive Director Listed Equities (Indexed) is a member of this Committee. IFM actively votes all proxies and directly engages with investee companies on a range of responsible investment issues.

Learn more about IFM’s responsible investment in Listed Equities »