Quarterly Update - October 2017

Business Update

PE Capital reached several key milestones in the last quarter:

  • Our Y Fund is currently exceeding its expected returns of 5% plus after fees

  • An improved online application (including online identification) for our Y Fund account

  • The development of an improved online smart application for our P3 fund to be launched in early November

  • Launched a key distribution partnership with Morgan’s Financial  via  a national video link

  • Head of Funds Management Sam Osborne appeared on Sky Business.

  • Development Approval (DA) achieved on 3 of our mixed use commercial property projects

  • A partnership with Linchpin and Endeavour Capital and their numerous arms

  • Commencement of the construction phase on our Amstel site in Cranbourne

As mentioned in the last issue we’ve been developing several funds that we believe fill a void in the market.  

As you would have seen in the financial press, yields on traditional deposits continue to remain low and therefore a number of alternatives are being both developed and considered in an effort to ensure that returns stay above inflation.

Of note there have been a number of articles written over the last few months with concerns regarding the cost of living outstripping investors and retirees investments. In other words the amount required to live in retirement comfortably is rising significantly to counterbalance investors returns on portfolios with low yielding investments.

So investors have 2 choices, either save more money for retirement which isn’t always possible as people have often already retired or have a portfolio that pays a better return than the inflation rate (ie general cost of living).

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 believe were missing in the market:

  1. A competitive return (forecast at 5.5%p.a.)

  2. Access to a portfolio of investments that are normally only available to sophisticated investors

  3. Surety of having 80% of the portfolio being invested across cash and well known wholesale fixed income investments with a maximum of 20% across several 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

Our Y Fund has exceeded expectations and has been returning over the 5.5% forecast (net of fees) over the past 2 months.  

We have a number of projects and development underway including:

  • A new retail proposition for the Y Fund, including website
  • A new smart application for the P3 fund 

For more information:

Property News

The Property team are very excited about commencing construction on stage 1 at Amstel which comprises a 7 Eleven, a drive through coffee offering and a stand-alone retail outlet.  We anticipate stage 1 will be complete and trading in April 2018.

In addition to the positive news at Amstel, we anticipate turning soil at Thompsons Road in the foreseeable future which will comprise a Mixed Use development including a PUMA fuel outlet, retail offerings and Industrial units.  This is a significant project that will change the landscape of Thompsons Rd, Cranbourne.