Fractional online property investment platform BrickX has been awarded a superior rating from research house SQM Research, scoring four out of five stars.
SQM identified the strengths of the BrickX trusts as “the depth and quality of senior management appears to be very strong” and “the liquidity mechanism for bricks appears to be a proven way to access liquidity”.
The research house also said it believed the simplicity of the fee structure was positive and the acquisition and disposal fee was in line with its peers.
“Initial value movements are positive and the locations appear to have been well chosen,” SQM said.
“The compliance committee is majority independent.
“SQM Research has viewed the platform and was impressed by its usability and depth of property information, which can be used to inform investor decisions.”
BrickX chief executive Anthony Millet said the favourable rating should allow financial advisers, who have proactively reached out to the firm, to now recommend the platform and trusts to their clients where appropriate.
“We have had great traction with SMSF investors who enjoy having control over which BrickX properties they choose to invest in along with the ability to diversify across different property types and suburbs,” Millet told selfmanagedsuper.
“As our product gives exposure to property investments, investors should be aware of the risks associated with such investments, including the fact returns are not guaranteed and that brick values can fluctuate.
“Detailed information about the risks and benefits are available on the BrickX website and in the product disclosure statement.”
In March, Millet told selfmanagedsuper SMSFs were using the platform to expand their existing property portfolios by using a geographically diversified approach, which in turn spread their risk across different properties.
“There’s where we’re seeing really good success,” he said at the time.
“We’re seeing people put their SMSF funds into BrickX where some of them are investing in a single property, but many are also diversifying across a number of properties.
“Our SMSF investors range from those that have put in a few thousand dollars to those investing $50,000, but what we’re also seeing is that every time we bring a new property to the platform, we’ve got investors, who already have an exposure, putting further funds in – so continuing to diversify across their portfolio.”
Last month, BrickX was awarded the Canstar 2017 Innovation Excellence Award.
