- Fractional investment platform provider DomaCom (DCL) has reported a 10.4 per cent increase in funds under management (FUM) since March 31, 2020
- FUM grew from $64.2 million at the start of this quarter to the current figure of $70.9 million
- Based in Melbourne, the company provides financial solutions for self-managed super funds, retirees and new home buyers
- The company attributed the growth to investments in its DFS pooled mortgaged sub-fund, as well as its Badgery’s Creek Land Banking and rent-to-own projects
- DomaCom currently has several other products under development and scheduled for launch later this year
- DomaCom shares have undergone no change today, trading for 6.2 cents per share
Fractional investment platform provider DomaCom (DCL) has reported a 10.4 per cent increase in funds under management (FUM) since March 31, 2020
Based in Melbourne, the company provides financial solutions for self-managed super funds, retirees and new home buyers. Using the DomaCom platform, investors are able to make fractional investments in a variety of asset classes, including property, mortgage-backed securities, renewables, disability accommodation and debt securities.
Despite the ongoing COVID-19 pandemic, DomaCom’s funds under management grew from $64.2 million at the start of the quarter — the fourth of the 2020 financial year — to a current figure of $70.9 million.
The company attributed the increase to investments in a range of different fund options.
The first of these is its DFS pooled mortgaged sub-fund, which is managed by DFS Portfolio Solutions. It enables direct mortgage investments to be included in the models that DFS Portfolio Solutions offers to financial advisors.
This investment provides enticing interest rates of seven to nine per cent by investing in loans that are secured against property assets. The current average loan to valuation ratio (LVR) is less than 55 per cent.
The second growth factor is DomaCom’s fourth land banking investment in the Badgery’s Creek locality, and includes both equity and debt syndications.
Under the category of farmland, the property will be rented out with a long-term objective of realising capital appreciation, largely due to the influence of Sydney’s new second airport at Badgery’s Creek.
Finally, DomaCom’s rent-to-own property syndication is making progress, with property due diligence currently underway. The first property is a $447,000 apartment in Melbourne’s inner-city suburb of Moonee Ponds. The developer’s distribution margin will be split between investors and the tenant.
The basis of the rent-to-own project is that the tenant will acquire an ownership in the sub-fund that holds the apartment by paying rent and looking after the property.
Arthur Naoumidis, CEO of DomaCom, said it was pleasing to see such significant growth in the company’s Funds Under Management during such a challenging time of market volatility.
“Our FUM growth demonstrates the robustness of DomaCom’s business model and proves that even during the COVID-19 pandemic, there are still segments of the market that attract investor attention,” Arthur explained.
“At the same time, we are continuing to develop new products which we expect to help drive future FUM growth in the years ahead,” he added.
These new products include Equity Mortgage, Essential Worker and Equity Release, and are scheduled to be launched later this year.
DomaCom shares have undergone no change today, trading for 6.2 cents per share at 3:11 pm AEST.