Investments

Indigenous Business Australia’s (IBA’s) Investments Program promotes self-management, self-sufficiency and economic independence for Aboriginal and Torres Strait Islander peoples.

We do this by using our capital base, skills and expertise, to accumulate and manage a substantial portfolio of investments. The investments are managed or operated on a sound commercial basis and generate economic impact for Indigenous Australians via financial returns, commercial capability development, employment, training and/or procurement.

Our investment portfolio

IBA investment portfolio map 2014-15

IBA’s investment portfolio comprises direct investments across a range of sectors including tourism and hospitality, retail, commercial property and industrial (manufacturing, mining services and primary industries), as well as the Indigenous Real Estate Investment Trust, the Indigenous Economic Development Trust, the Asset Leasing Trust and the Dominican Indigenous Education Trust.

Read more about the individual asset groups within Our Investment Portfolio.

Our focus areas

As at 30 June 2016

Asset ownership Capacity development Wealth accumulation
Manage 22 direct investments and three trusts. Working with 40 Indigenous Communities/Organisations and 60 Indigenous businesses across Australia who leased assets from IBA across Australia. Current investment portfolio valued at 279.6 million, with Aboriginal and Torres Strait Islander investors owning, in aggregate, equity interests of $108.8 million.
Stable and enduring income Employment and training Supply chain opportunities
$6.58 million annual distributions to Indigenous Partners. 396 jobs for Aboriginal and Torres Strait Islander peoples, representing 35.2% of the total workforce in the Investments portfolio. With total salaries, wages and job relevant training for direct investments of $12.5m. $5 million of services and products were sourced from 59 Indigenous suppliers.

Our portfolio value

Through our Investments Program IBA brings together Aboriginal and Torres Strait Islander peoples and industry capability partners in sustainable investments that have the potential to generate wealth, employment and other economic development opportunities for Indigenous Australians.

As at 30 June 2016, Our Investment Portfolio was valued at approximately $279.6 million, with Indigenous investors owning, in aggregate, equity interests valued at $109 million.

During the last financial year our investment portfolio generated $5.8 million in distributions to its Indigenous partners.

Our history

Image - Investments - History graph

 (*Data on Indigenous partner and industry capability partner share available from 1 July 2008 only. IBA share includes cash holdings.)

Our investment philosophy

IBA has more than 25 years experience in investing alongside Aboriginal and Torres Strait Islander peoples, and has achieved sound outcomes by: undertaking thorough and rigorous assessment and due diligence; focusing on management; adhering to strong corporate governance principles; and applying sound commercial judgment. Read more about Our Investment Philosophy

Our Investment Selection Criteria and Guiding Principles

In building and managing our investment portfolio  IBA is guided by an integrated investment philosophy, which includes an established set of guiding principles. Read more about Our Investment Guiding Principles.

Every investment opportunity is unique and is assessed against its overall strategic goals, with returns and risks carefully weighed against established criteria. Read more about Our Investment Selection Criteria.

Indigenous Real Estate Investment Trust

The Indigenous Real Estate Investment Trust (I-REIT) was launched in October 2013 to give Indigenous investors the opportunity to invest in an actively managed commercial property fund alongside IBA and other Indigenous organisations.

In addition to financial returns, the I-REIT aims to generate sustainable social and economic outcomes by partnering with external stakeholders to achieve employment, training and procurement outcomes through management and operational arrangements.

At 30 June 2016, the I-REIT holds six commercial property assets at a net asset value of $104.5 million, and has unitholders comprising twelve Indigenous investors and IBA. Read more about the Indigenous Real Estate Investment Trust.

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