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Industry Funds Management

Last Updated : 14 May 2010

Website:  www.ifm.net.au

AGEST and Industry Funds Management (IFM)

AGEST has employed Industry Funds Management to manage some of the Cash, Infrastructure and Private Equity investments for the fund.

Cash

Objective
To outperform the UBS Australia Bank Bill Index.

Strategy
The investments in the IFM Cash portfolio are conservative, seeking short term money market returns with strong capital security.  Cash investments in this portfolio include bank bills, certificates of deposit and other similar short term financial securities issued by governments and banks.  Only investments with less than 12 months to maturity are held in this portfolio.

Infrastructure

IFM has two infrastructure funds with the following investment objectives:

• Australian Infrastructure - objective is 10% pa (after tax and fees) over rolling 3 year periods
• International Infrastructure - objective is 10% pa (after tax and fees) over rolling 3 year periods

The Australian Infrastructure Fund is an open ended pooled superannuation trust designed for Australian superannuation funds seeking access to Australian economic and social infrastructure assets.

The investment universe for IFM Australian Infrastructure is defined as interests in Australian real property from which services to the community or government are delivered, and Australian physical facilities for the delivery, generation and transportation of energy, information, people and products.

The International Infrastructure Fund is an open ended pooled superannuation trust designed for Australian superannuation funds seeking access to economic and social infrastructure assets in global developed economies.

The investment universe for IFM International Infrastructure is defined as physical facilities for the delivery, generation and transportation of energy, information, people and products and real property from which services to the community or government are delivered.

Private Equity

AGEST has committed $50 million to IFM's Australian Private Equity Fund IV (the "Fund"), a fund-of-funds vehicle.  This money will not be fully drawn until IFM has a sufficient number of suitable investments. This may take several years.

The Fund's investment objective is to return 15% pa (after fees) to investors over the life of the Fund.  To achieve this objective, the Fund invests in private equity funds and co-investments based predominantly in Australia and New Zealand.  The target investment sectors are venture capital, buyouts, secondaries in respect of venture capital and buyouts, and co-investments.