South Korea’s defence ministry invests in TIF

Australia’s industry super investment vehicle, The Infrastructure Fund (TIF) has caught the eye of its first offshore investor, South Korea’s Military Mutual Aid Association (MMAA). 

The MMAA has been given the green light by Australia’s Foreign Investment Review Board to go ahead with its $43 million investment in TIF. 

The MMAA, was established by the South Korean defence ministry to look after the welfare of military personnel, with a 170,000-strong membership base as a savings program. 

TIF was formed in 1998 by a group of industry super funds to invest in infrastructure and has provided returns of more than 16 per cent per annum over the last 10 years. 

TPCG Chairman Bob Lette said that, “MMAA was attracted by TPCG’s like-minded investment approach - delivering investors consistent, sustainable and above-benchmark returns through an expanding and diversified portfolio of infrastructure assets”.  

“This deal was initiated by our manager Hastings Funds Management.  In the end, TIF’s strategic approach, governance structure and return track record gave MMAA the confidence that we can deliver what they need,” he said.  

“The investment reflects MMAA’s plans to increase its overseas investments, particularly in quality infrastructure, to generate consistent returns in the medium to long term. MMAA hopes to get more Australian Infrastructure investment opportunities through their investment in TIF.” 

The deal comes as TIF targets additional quality infrastructure assets. Earlier this year, TIF and consortium partner China Merchants Group won the $1.75 billion New South Wales Government auction for the 99 year lease of Port of Newcastle.