DomaCom inks managed account provider deal

09-Mar-2017

By Sarah Kendell

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Fractional property investment firm DomaCom has signed an agreement with managed account provider DFS Portfolio Solutions to include the group’s property solutions in model portfolios delivered to DFS’s adviser clients.

DFS will allocate around $25 million from its managed accounts, which are available to its own advisers under DFS Advisory Services and to external advice groups, to the DomaCom fund as a way of adding direct property to client portfolios.

Commenting on the deal, DomaCom chief executive Arthur Naoumidis said it was an indication direct property could be included in an investment portfolio as part of a broader asset allocation strategy.

“Including property within an asset allocation model is a core element of the DomaCom business model that we see as being a major driver of the growth in funds under management of the DomaCom fund,” Naoumidis said.

DFS principal and head of research Stephen Romic said commercial, industrial and retail property would be the focus of the group’s allocations as that would deliver higher yields for investors.

Romic added the DomaCom platform would allow DFS to efficiently allocate to and manage property assets on behalf of the group’s clients.

DomaCom said while the group was agnostic when it came to property selection on its platform, it contracted independent specialists to ensure all properties invested in through the platform were reasonably valued.

In addition, it employed a property manager to regularly inspect, maintain and manage tenancies in each property, and provided investors with monthly statements detailing rental income, it noted.

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