Boutique property group Kinsmen has shrugged off a slow 12 months in its retail fund with plans to move deeper into the financial advice market.
The Adelaide business hopes to bump up its funds under management (FUM) by 30 per cent to $100 million within six months through a planned purchase of assets in Queensland, South Australia and the Northern Territory.
Kinsmen hopes this will attract the attention of more dealer groups to its open-ended diversified retail property fund as it eyes off a listing on the stock exchange, managing director Craig Watson said.
“I’ve had verbal confirmation from dealer groups when we get to $100m they’d like to check this box,” Watson said. “We’ll really be able to open up a number of other dealer groups.”
He said the growth plans follow a quiet 12 months with a drop in the number of financial advisers recommending the property fund after the collapse of Westpoint.
“Last year was pretty quiet – the retail fund dried up,” Watson said.
“Mezzanine finance used to be a buzzword. Now when people see mezzanine, it’s a dirty word.”
[But] January was actually a fairly solid month.”
The fund listed on BT, Macquarie, Symetry and Netwealth platforms and has distribution channels with AFG, WealthSure and Platinum.
Three quarters of retail investors in the last 12 months were self-managed superannuation funds, Watson said.
“We’ll just keep pushing through the financial advisers.”
