DFS SMA adds DomaCom property to their platform


Arthur Naoumidis

DFS SMA adds DomaCom property to their platform Crowdfunder DomaCom has tapped a new line of business by signing a Heads of Agreement with DFS Portfolio Solutions, a specialist asset allocator and SMA model manager to include property via the DomaCom Fund.

DFS Portfolio Solutions is one of Australia’s leading model managers for IMA/SMA platforms and delivers its models to DFS Advisory Services (its own advisory business), as well as external boutique advisory firms.

DFS intends to use Direct Property as an additional diversifying asset class across its model portfolios and further intends to use the DomaCom Fund to deliver direct property investments. DFS Portfolio Solutions expects to initially allocate around $25 million to the DomaCom Fund, with further allocations to follow.

DomaCom CEO Arthur Naoumidis said: “This is a first for our group and demonstrates that direct property can be included in an investment portfolio as part of an overall asset allocation strategy by investment model managers. 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 the Funds Under Management (FUM) of the DomaCom Fund”.

DFS Principal and Head of Research, Stephen Romic, said DFS Portfolio Solutions would initially seek commercial, industrial and retail property to deliver a higher yielding asset class, and is working to identify suitable property advisors to source appropriate real assets for the offering.

He further acknowledged that the DomaCom platform will allow DFS Portfolio Solutions to efficiently allocate to, and manage property and other direct assets on behalf of its clients.

The DomaCom offering is an innovative and compelling alternative to traditional syndicated structures. While DomaCom as the fund manager will be agnostic on the property selection, it is responsible for the due diligence process that is handled externally by independent specialists to ensure the property is reasonably valued and is as it is promoted.

DomaCom also appoints the property manager to ensure tenancy, regular inspection and maintenance. Each property is revalued annually and clients receive monthly statements with their rental payments.

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