Fractional investment platform DomaCom reaches $100 million Funds Under Management
ASX-listed fractional investment platform DomaCom, have announced continued growth in the DomaCom Fund over recent months, with its FUM pushing up through the $100 million mark in early calendar 2022. It was only recently in September 2021 that FUM moved above the $90 million mark. The percentage increase in FUM over the past 12 months was an impressive, at around 33% (end-December 2020 quarter FUM was $75.3 million).
The bulk of the FUM increase achieved over recent months was attributable to property acquisitions for small investors and self-managed superannuation funds (SMSFs).
Taking a longer-term perspective, the strong growth reported in the Fund’s FUM over the past few years is in part 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 its early days. 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.
Small investors and SMSFs can now gain exposure to a range of commercial property opportunities, rural farmland, renewable energy, property developments, disability and affordable housing, special opportunities in new business, mortgage lending and land banking.
Continued innovation of the product suite attached to the DomaCom Fund has also played a key role in this FUM growth. A good example is the Seniors Home Equity Release, which enables retirees to utilise the ATO downsizer allowance to sell a portion of their homes and receive the proceeds tax-free via their super fund.
Another example is DomaCom’s Shariah compliant housing finance solution for Australia’s Islamic community, which will be released early this year.
The continued evolution of the DomaCom platform and the innovative financial models that feed off it have continuously demonstrated its capability to syndicate almost anything that passes a strict due diligence process for groups of investors, families and friends. The FUM growth the DomaCom Fund continues to enjoy has been aided by the fact that SMSFs – a key target market – represent a significant percentage of Australian investors who are able to curate a portfolio of high value assets by syndicating with other investors to maintain a balanced portfolio. Any investor can, by virtue of the DomaCom platform, now get a foothold on the property ladder and enjoy the growth that many segments of this asset class have recently delivered.
DomaCom CEO, Arthur Naoumidis, said, “We are delighted with the continued growth in the DomaCom fund’s FUM over recent months. It in part reflects our decision some years ago to diversify the fund’s asset mix into other property sub classes besides residential. The FUM growth can also be attributed to the DomaCom’s team’s continued ability to enhance the product offerings feeding off the Fund. As part of this process, they have worked diligently to secure unique rulings for SMSFs and seniors looking to downsize and use their home to top up their super – and this quest is ongoing.
“There is another important driver behind the continued excellent FUM growth our Fund has achieved. 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. Investors serviced by these early adopter advisors continue to derive benefits from exposure to the wider spread of asset classes accessible via the fractional investing model. We anticipate that the DomaCom’s team’s ongoing ability to evolve the fractional investing platform’s product offerings as well as continued growth in the number of financial advisors investing client monies into the Fund will power FUM growth over the coming year.”