Crowdfunder DomaCom has signed a non-binding agreement with DFS Portfolio Solutions, a specialist asset allocator and separately managed accounts (SMA) model manager which would add DomaCom Fund to its platform.
DFS Portfolio Solutions said it expected to initially allocate around $25 million to the DomaCom Fund, with possible further allocations later on.
The company would also use direct property as an additional diversifying asset class across its model portfolios and further use the DomaCom Fund to deliver direct property investments.
DomaCom’s chief officer, 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 to the growth in the funds under management (FUM) of the DomaCom Fund.”
DFS principal and head of research, Stephen Romic, said that the company would initially seek commercial, industrial and retail property to deliver a higher yielding asset class and that it was already looking for suitable property advisers to source appropriate real assets for the offering.
DFS Portfolio Solutions is an Australian model manager for IMA/SMA platforms and delivers its models to DFS Advisory Services as well as external boutique advisory firms.
