Property group’s funds booming
Inflows to the Centro Direct Property Fund (DPF) and its international counterpart topped $359 million during the 2006-07 financial year, surpassing the group’s expectations for the period.
Comprising separate domestic and international offerings, the funds invest in diversified portfolios of retail properties, with both experiencing above average inflows during May and June 2007.
Andrew Scott, Centro chief executive officer, suggested the superannuation bonanza of recent times had spurred this dramatic growth, which saw both the Direct Property Fund and the Direct Property Fund International (DPFI) process fund flows almost 22 per cent higher than those of 2006 as investors sought out suitable superannuation investment assets.
The DPF now has $2.3 billion in assets under administration and the DPFI has $1.9 billion, each outperforming their benchmark returns with 16.6 per cent and 11 per cent returns respectively for the year.
Scott said of the extremely positive inflows: “Investors are increasingly appreciating the diversification benefits that direct property adds to their portfolios.
“Investors are also reassured by Centro’s significant co-investment in the funds, as this aligns Centro’s interests with that of co-investors.”
Typical assets the DPF and DPFI invest in are neighbourhood shopping centres that are supported by a supermarket, which according to Centro general manager Philippa Kelly “is well suited to any investor seeking a quality, low-risk investment”.
Both funds received ‘superior’ ratings from research house Managing Investment Assessments earlier this year.
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