DomaCom has announced its Fractional Investment Fund now has reached the milestone of $100 million in funds under management and has attributed that growth to investments by SMSFs and smaller investors.
The investment firm stated it had worked hard to secure some unique investment rulings for SMSFs and seniors looking to downsize and use home equity to top up their super and recognised the role SMSFs played in helping the fund grow.
“SMSFs represent a significant percentage of investors who are able to curate a portfolio of high-value assets by syndicating with other investors to maintain a balanced portfolio,” it said.
DomaCom chief executive Arthur Naoumidis said the support from investors, licensees and financial advisers has contributed to the fractional model’s success.
“It is this innovation coupled with advisers’ progressive thinking that has enabled us to deliver financial and investment solutions that are in the best interests of investors with specific needs,” Naoumidis said.
“There is a demonstrable benefit to fractional investing which we look forward to building on with more advisers in 2022.”
When first released, the Fractional Investment Fund offered investments in residential property only, but has since expanded its asset mix and now provides investment opportunities usually only available to sophisticated investors, such as commercial property, rural farmland, renewable energy, property developments, disability and affordable housing, special opportunities in new business, mortgage lending and land banking.
DomaCom also attributed the success of the fund to the recent development of a seniors home equity release investment product and a shariah-compliant housing finance solution for Australia’s Islamic community.
“These new and innovative financial models demonstrate the flexibility of the platform where almost anything that passes a strict due diligence process can be syndicated for groups of investors, families and friends. Certainly in the property world everyone can get their foot on the property ladder and enjoy the growth that this asset class delivers,” it said.