Indigenous Prosperity Funds (IPF)

The Indigenous Real Estate Investment Trust (I-REIT) was established in December 2013 as an initiative of Indigenous Business Australia (IBA), to provide wholesale Indigenous investors the opportunity to invest in partnership with IBA and other Indigenous organisations in an actively managed property fund. The initial portfolio of four properties has increased to 11 whilst the number of Indigenous investors has increased from four to 30. As at the 15 April 2024 the property assets were valued at over $164.2 million.

A trading window will open on 3 June 2024 and will accept applications until 21 June 2024. Please contact Investor Relation for further information and to obtain a copy of the Information Memorandum dated 15 April 2024.

The IPF, consisting of the IPF Growth Fund and the IPF Income Fund, provides eligible investors^[1] the opportunity to invest in a diversified portfolio of investments alongside IBA and other Indigenous investors, that includes exposure to Australian and global shares, bonds, property, and cash. It offers a diversified multi-manager approach managed in conjunction with JANA Investment Advisers, a leading specialist investment consultant.

Investors can apply for Units in one or both of the Funds in such proportions as they decide (subject to the minimum investment amounts set out in the IPF Information Memorandum). By investing in the Funds in different proportions, investors have the flexibility to tailor their overall investment according to their desired level of risk exposure and potential return.

As at 30 June 2023, the total funds under management (FUM) was $229.5 million, with 42 Indigenous investors investing alongside IBA.

IPF Growth Fund

The IPF Growth Fund has a focus on generating returns from a diversified investment portfolio of predominantly Growth Assets including Australian shares, global shares and property, and may include infrastructure and alternative assets. It has an emphasis on delivering growth, however some Defensive Assets, such as bonds and debt securities, will be included in an attempt to moderate volatility.

The investment objective of the Growth Fund is to achieve a return that exceeds CPI by 4% per annum over rolling seven-year periods. Investors considering the IPF Growth Fund should take a long-term investment view and be prepared to withstand higher volatility of returns under normal market conditions.

IPF Income Fund

The Income Fund has a focus on generating returns from a diversified investment portfolio of predominantly Defensive Assets including bonds and debt securities issued in or outside Australia with a range of maturities. It will have an emphasis on providing income but some Growth Assets, such as shares, property, infrastructure and alternative assets, will be included in an attempt to enhance returns.

The IPF Income Fund is a more conservative investment than the IPF Growth Fund with a lower target return and can be expected to exhibit less volatility of returns under normal market conditions. The investment objective of the IPF Income Fund is to achieve a return that exceeds CPI by 1.5% per annum over rolling three-year periods.

Benefits of Investing

The investment oversight of an Investment Manager that is a wholly-owned subsidiary of IBA with both investment expertise and an understanding of the investment needs and aspirations of Aboriginal and Torres Strait Islander people.
The technical expertise, manager research and selection capabilities of JANA Investment Advisers, a leading specialist provider of investment consulting advice as selected by the Investment Manager.
Underlying diversified investment portfolios managed by specialist asset managers selected from a large pool of managers based in Australia and around the globe.
Half-yearly distributions.
The ability to make additional investments or submit redemptions on a monthly basis.
Competitive management fees and expenses.

The Investment Manager

The Investment Manager of the IPF is IBA Asset Management (IBAAM), a wholly owned subsidiary of IBA. The Investment Manager has a majority of independent board members who bring significant experience in investment, governance and Indigenous affairs.

The Investment Manager sets the overall strategic direction and investment strategies of the Funds and chooses and monitors the performance of any investment consultants to the Funds.

For further information on the IBAAM board click here. Note that in addition to the IPF, the Investment Manager manages the Indigenous Real Estate Investment Trust (I-REIT). The I-REIT provides eligible Aboriginal and Torres Strait Islander investors with the opportunity to invest in a geographically and industry diversified property portfolio. Further information regarding the I-REIT may be obtained here.

The Investment Manager has appointed JANA Investment Advisers Pty Ltd as an investment consultant to the IPF. JANA provides strategic investment advice and implements the investment strategy of each IPF fund.

Investment Consultant - JANA Investment Advisers Pty Ltd

JANA Investment Advisers Pty Ltd has been appointed by the Investment Manager as the Investment Consultant for the IPF. JANA has been a leading specialist provider of investment consulting advice for over 30 years and provides customised global research and investment solutions to Australian institutional investors.

[1] An Eligible Investor is an entity:

in which at least 50% of the beneficial interests are held by Aboriginal or Torres Strait Islander people; and/or
that furthers the economic, social or cultural development of Aboriginal or Torres Strait Islander people; and
c. that is a Wholesale Investor (as defined in section 761G of the Corporations Act) making an initial investment of at least $500,000 (unless a lower amount is approved by the Trustee).