DomaCom open for business

After a two year development DomaCom Limited CEO, Arthur Naoumidis, has announced that DomaCom are “open for business” with an innovative fractional property investment product called the DomaCom Fund.

“Today we have accepted the first application into the DomaCom Fund and with over 18,000 properties on our platform, investors will now have the ability to invest in residential, commercial and industrial properties of their choice” says Arthur.

Prior to Christmas DomaCom received a product authority from ASIC including the necessary ASIC reliefs to accommodate the unique MIS sub-fund structure of the DomaCom Fund, an AFSL with a permission to make a market which will enable the launch of DomaCom’s online liquidity facility where investors can sell their individual property units. With Perpetual serving as the Responsible Entity and Custodian, the DomaCom Fund has a solid foundation of corporate governance which should give comfort to advisers when recommending the DomaCom Fund to their clients.

DomaCom was established to provide an asset allocation solution for the property asset class to enable investors, particularly SMSFs for whom property represents such a large transactional size, to achieve the right balance in their portfolio without the need for leverage. Financial advisers can now fully service the direct property asset class needs of their clients which may increase their fee basket.

The unique structure of the DomaCom Fund gives investors their choice of property up to the amount they wish to invest. This is achieved via a book build process that if applied across multiple properties also gives the investor diversification across different property types and geographic locations.

Liquidity is provided by an online facility matching buyers and sellers in a unique structure that eliminates the common redemption process that sometimes results in funds being frozen because of a lack of cash in the fund.

The DomaCom fractional property investing fund simulates the experience of buying a whole property but gives the investor the ultimate say in which property they want to invest in.

The increasing trend towards SMSFs has brought with it a demand for property which is difficult to satisfy because of average low account balances comparative to high property prices. The DomaCom fractional model explores this potential well and will likely spawn further development in other demographics.

“We established DomaCom over two years ago to introduce some of the successful equities market concepts to the property market. In doing so we have expanded the potential market reach for all advisers”, said DomaCom CEO, Arthur Naoumidis.

Advisers can now register online for the Accreditation program, a necessary step in understanding how the fund operates, how to employ it appropriately for clients and very importantly how to explain it to clients.

The Accreditation Program is available online and will also be offered as a facilitated workshop for dealer groups. Regular workshops will also be run for individual advisers who prefer a lecture style learning program and dates will be announced shortly.

Once accredited advisers will be able to open accounts online for clients in the DomaCom Cash Fund to deposit future investment funds into the funds cash pool. The DomaCom Cash pool is held in an ANZ bank account that is offering a generous margin over the daily cash rate with daily liquidity.