In 2016–17, IBA will continue to promote the Indigenous Investment Principles and develop investment opportunities, with a focus on Indigenous engagement across multiple product and service areas.
Research and market commentary indicate that overall economic conditions are expected to remain subdued in 2016–17, with a continued low interest rate environment, and volatility in equity markets affected by ongoing economic instability in parts of Europe and continued moderation of China’s growth rate. Against this background, IBA expects competition for quality assets to remain high as investors seek higher yields relative to cash and fixed income.
A pipeline of compelling investment opportunities presented themselves in the first half of 2016. IBA expects the program’s level of acquisition activity to increase as it seeks opportunities to allocate capital in 2016–17 in line with the investment strategy. As IBA adapts to changing conditions, the program will explore opportunities across current targeted sectors (retail and tourism) as well as future growth sectors such as renewable energy and sustainable housing.
IBA will also continue to pursue initiatives to reposition its portfolio through diversification, implementing better management structures for its tourism and retail portfolios, and divesting non-core assets.