I want to give you a bit of background as to where the concept of fractional investing came from. It really came from my previous business which was premium and so there we had 44,000 portfolios administering 40 odd billion dollars and incoming of the coming up with the idea of DomaCom.

I looked at those portfolios to see was there a problem that needed the solution and the first one the problem that really stood out for me was that out of those 44,000 portfolios focusing just on the self-managed super funds, there are 18,000 SMSF’s on the platform and looking at those 18,000 s MSF’s 90% had no real property in it, 10% had a 100 % or more, simply because they leverage to buy the properties so that was really the problem that I set out to solve because that problem was symptomatic of the transaction size was too great for most portfolios, 80% of self-managed super funds are less than a million dollars, and you can’t really buy a residential property in the hole within a super fund and stay within any reasonable asset allocation even if you could borrow. So really was to take this lumpy asset and divide it into bite-size chunks exactly as you would with equity so that was the first problem.

The second one was, in 2011 two years away from FOFO coming in and similarly what I saw with FOFO is that it was basically changing the financial planning community in Australia to become fee-based, and one thing I saw a premium was that all the financial planning firms that used us for asset allocation based old fee-based, and one of the key components of most fee-based financial planners is they have asset allocation in the business model, so the other driver of the business was to really enable financial planners to include a major asset class they up until now they haven’t been able to do so which is residential property,

The reality is that on what service agreement you financial planners have with their clients that says I will look after a retirement future for everything except one of the single biggest transactions you’ll ever do, so basically that was the second driver with FOFO coming along and 17,000 planners, becoming fee-based was to enable them to include property as part of their asset allocation model.

The third driver was SMSFs, again a million Australians are telling us something by their actions, forget about what you read about, opinions of market commentators and in a fund managers etc about saying or SMSF really shouldn’t manage their own investments the reality is, if they didn’t want to manage their own investments there wouldn’t be in an SMSF if they wanted the pulled investment strategy you’d like employing a fund manager to do it or guess what that would have stayed at industry fund and corporate super instead they went through this arduous task of doing a rollover a three-month process. It’s harder than changing bank accounts, and then they move their money toward their SMSF, if they wanted the pulled investment vehicle that wouldn’t have done that so SMSFs are telling you by their action a million Australians they want engagement with their investments, they want to see and make the decision. That’s the third driver is that we want to provide access to residential property investment allowing the investor to select and that’s a key part of DomaCom.

DomaCom itself does not select the asset but what we do is to independent your diligence on the asset in terms of for residential property to conveyancing checks on a title contract of sale, will do building inspections, pest inspections with evaluations so we would give some protection and comfort to investors that regardless of who selected the asset, who initiated the transaction someone independent of them has undertaken due diligence on the transaction on the asset.

The third driver was enabling SMFSs to have a choice and in fact, that’s one of the special things about property unlike equities everyone has a very good idea of how property works. We all have opinions there are a hundred people in the room there’s a hundred opinions north facing, south facing, west-east, one-bedroom, two-bedroom, car spot, not inner/outer and guess what everyone’s right in the long term as long as you pay the right price.

So, we enable investors to have that choice now, probably double on their choice will go elsewhere use a pulled fund now as you’ll probably notice there is no pulled residential fund so that’s the other thing so really that’s where DomaCom came from was to provide solutions to SMSs accessing property within a proper assets allocation model which suits the feed based financial planning business model and then enables investors and their advisers to exercise their choice.

So basically, they’re the three underlying drivers behind the DomaCom business model to enable self-managed super funds to fractionally invest in properties exactly as they would in equities to diversify across properties exactly as there would in equities and also enable financial planners to include property particularly residential property as part of the reallocation business model and then thirdly and finally to enable choice you know enable advisors and investors to exercise their opinions and choice.