DomaCom announces deal with AFSL

05-Feb-2015

By Elizabeth Somerville

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Sentinel Private Wealth has become the latest group to approve the DomaCom Fund, with the property investment specialist yesterday confirming it was in discussions with a number of other groups.

“We’ve got something like 30 dealer groups that are currently reviewing us and a couple of major ones now going through the process,” DomaCom chief executive Arthur Naoumidis told financialobserver.

“Sentinel are a great example of the shift towards the independent market away from the aligned dealer groups, which is a strong market for us.

“We will work to support groups like Sentinel, to feed back business and help their advisers grow substantial property portfolios for their clients.”

Naoumidis said the groups were attracted to DomaCom’s fractional property investment fund as they were looking for a solution to fill a gap in the property market and provide a solution for their clients.

“All of them have the same problem: they are losing client funds under management (FUM) and their clients are exposed to risk because they don’t have a solution to direct property,” he said.

“The issue is where an [adviser] doesn’t provide property as part of their solution, someone else will, and that someone else usually is a shark, a property spruiker.”

Through using the company’s flagship fund, advisers were able to stem that flow and retain FUM within the business while also enabling their clients to diversify into property, he said.

“What we do is take property and put it into the regulated sphere, [which] enables the assets to stay under the FUM,” he said.

“It’s good for [advisers] as a business, [and] it’s good for their clients as rather than exposing their clients to the vagaries of an unregulated property spruiker market, clients now have [their adviser acting] as the gatekeeper.”

The addition of DomaCom’s core product to the approved product list of dealer groups would continue to be a focus for the company this year, with many individual advisers already pushing to have that option made available to them, he said.

“Technically, we don’t even threaten the verticals as the threat’s already there for them, and the threat is their clients will buy physical property,” he said.

“[We offer] a solution that fits in with all of their structures; it’s just not their solution.

“We’re just a product that fits in their stable.”

Further, DomaCom this week announced the appointment of former AMP strategic business development manager Chris Benson to the role of Victoria and Tasmania state manager.

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