Centro property funds drop entry minimum and costs
Centro Properties Group has announced a number of changes to its $2 billion Centro Direct Property Fund (DPF) and $1.1 billion Centro Direct Property Fund International (DPFI).
For both funds, the minimum investment amount has been reduced by 50 per cent, from $50,000 to $25,000. Centro expects this will make the funds more attractive to the self-managed superannuation fund market.
The entry cost for the DPF has been dropped from 2.5 per cent to 1 per cent, and from 1.8 per cent to 1 per cent for the DPFI, with the aim of making the funds more accessible for investors looking to access direct retail property funds.
According to Philippa Kelly, Centro general manager: “Investor support for both funds continues, with $250 million raised in the funds during 2006.
“The recent changes will assist direct investors, particularly self-managed superannuation funds, to access the funds, which now have a lower entry threshold and reduced costs.”
Both funds outperformed their benchmarks in 2006, with the DPF delivering an 18.4 per cent total return for 12 months to December 31, and the DPFI delivering an 11.9 per cent return for the same period.
Centro manager, direct property funds, Alan Hayden expressed his belief in the continued success of direct retail property investments.
“These returns demonstrate the strong income and capital growth derived from retail property investments.
“Retail property continues to be the best performing asset class, as it has been for the last 20 years.”
Recommended for you
Clime Investment Management has welcomed an independent director to its board, which follows a series of recent appointments at the company.
Ethical investment manager Australian Ethical has cited the ongoing challenging market environment for its modest decrease in assets over the latest quarter.
Commentators have said Australian fund managers are less knowledgeable compared with overseas peers when it comes to expanding their range with ETFs and underestimating the competition from passive strategies.
VanEck is to list two ETFs on the ASX next week, one investing in residential mortgage-backed securities and the other in Indian companies.
