Welcome to our quarterly newsletter which includes an update on our funds management business, our property projects and other related news. If you have any questions, please do not hesitate to contact us.
At the start of May PE Capital celebrated it’s 2nd anniversary, which gave us an opportunity to reflect on how far we have come as well as what lies ahead.
Key milestones for the business over the last 2 years have included:
- The launch of the Y, P1 and P3 Funds offer
- The launch of a white label fund
- Development of the PEC Asia fund and our SIV offer
- Key distribution partnerships including Class Super, mFund on ASX, HUB 24 and Morgans Financial
- 9 mixed use commercial property projects
- Development Approval (DA) achieved on our Thompsons Road Cranbourne, Amstel Centre Cranbourne and 181 Woods Road Truganina projects
- $250M in Gross Realisable Value in our projects
Over the last year, we’ve been developing several funds that we believe fill a void in the market. We thought, to kick things off, we’d give you some insight as to why we came up with what we did.
Having worked in the deposit and savings businesses at a number of Australia’s major banks for over 15 years, we saw a few gaps in the market that we thought investors would be interested in.
Generally speaking customers who have between $5,000 and $100,000 don’t have many options, as they only have a limited type of product, financial planners aren’t usually interested and wholesale investments normally kick in at $500,000. A client would normally walk out with a cash management account, term deposit or online savings account and as you’d expect with rates at the moment, the returns on these investments aren't great.
As a result, we developed the Yield (Y) Fund in an effort to offer investors an alternative solution and provide three key traits that we thought were missing in the market:
- A competitive return (forecast at 5.5%p.a.
- Access to a portfolio of investments that normally only sophisticated investors would have access to
- Surety of having 80% of the portfolio being invested across cash and well known wholesale fixed income investments with a maximum of 20% across a number of our property projects. The Y Fund is also rated by property fund specialist PIR who came back with a AA- recommendation.
For more information: http://www.pecapital.com.au/y-fund
Further to developing the Y Fund, conversations had while talking to a number of industry professionals (especially in the Self Managed Super Fund (SMSF) space), consistently asked whether investors could invest directly into our property projects. As a result we developed our Property (P1 & P3) offers that allow investors to invest across multiple mixed use commercial property projects. For clients that already had their cash and fixed income investments covered it enabled them to have some exposure to mixed use commercial assets at a lower entry point and have peace of mind that their funds were invested across numerous projects and in an in-demand sector (service stations, fast food, childcare etc)
For more information: http://www.pecapital.com.au/p3-fund/
We recently confirmed a new project in Bell Park, Geelong, taking our total projects to nine. We expect to begin construction on our first three projects in September 2017.
Economic & Market Update
Did you know that with Term Deposits that legislation passed in 2016, that the quickest you can liquidate your investment is 31 days?