Fractional investment platform, DomaCom, has seen funds under management reach $100 million thanks to investments by self-managed super funds (SMSFs).
The firm offered the ability to make fractional investments into a range of property-related investments via a trust structure.
In an announcement to the Australian Securities Exchange (ASX), the firm said the bulk of the FUM increase was attributable to property acquisitions for small investors and SMSFs.
This was due to a “willingness” by superannuation investors to consider alternative asset classes in the hunt for yield in a low interest rate environment. This included areas like renewable energy, disability and affordable housing, mortgage lending and land banking.
“The strong growth reported in the fund’s FUM over the past few years is attributable to a willingness to invest in a wider range of assets going beyond the standard residential property, which dominated the fund’s investment portfolio in the early days,” it said.
“This broadening of the fund’s investment mandate means small investors and SMSFs have been able to access asset classes often characterised by big ticket items, which were previously only available to sophisticated investors.”
Another benefit for SMSFs was that they were able to curate a portfolio of high value assets by syndicating with other investors to maintain a balanced portfolio, DomaCom said.
DomaCom chief executive, Arthur Naoumidis, said: “There is another important driver behind the excellent FUM growth, this is the support of a small but growing supporter base among financial service licensees, their adviser networks as well as their smaller investor and SMSF client bases”.
