Fund managers need to understand planners
Property fund managers need to boost their knowledge of how financial planners think if they are to achieve good distribution of their products, a new report has found.
The author of the Property Investment Research report, former Sealcorp head of strategy Phil Kelley, said fund managers found it easy to be enthusiastic about the latest property they have bought, but the product must match the adviser’s needs.
“Most advisers put together and manage a portfolio in a structured and disciplined way and choose products with features that best fit the systems and structures they use,” Kelley said.
“Understanding all of this is just as important for the fund manger as buying a good property and having the right tenants.”
The report, “Maximising Retail Distribution”, highlights the key obstacles to distributing property-related products using advisers and dealer groups.
Kelley said the report also offers solutions for fund managers trying to find ways around these obstacles.
“We have explained the product features dealer groups and advisers look for and how to improve the relationship with distributors,” he said.
“Also covered in the report are issues such as accessibility to platforms, liquidity arrangements, availability of research, perceived risk and management integrity.”
Kelley said the distribution stakes are high, as even a 1 per cent shift in asset allocation will mean $9 billion will flow into the property sector.
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