DomaCom partnered with DFS Portfolio Solutions to launch a $4.1m mortgage sub-fund.
DomaCom announced an allocation to two mortgage investments through the firm's first branded mortgage fund with DFS. The firm said the two mortgages total around $4.1 million, with the first already drawn down.
DomaCom chief executive Arthur Naoumidis said the firm has been working with DFS to offer a branded retail mortgage sub-fund on its platform for some time.
"Until now this market was mostly accessed by sophisticated investors but as a model manager, DFSPS has unlocked the retail potential of the non-bank sector by making this sub-fund available to clients and advisers who utilise its portfolio services," Naoumidis said.
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According to DFS managing director Stephen Romic, accessing and managing mortgage assets was difficult prior to DomaCom's fractional model.
"DFSPS and DomaCom have been working together for over 12 months to build a unique and innovative capability that allows advisers to efficiently incorporate exposures to first mortgage investments within their client portfolios," Romic said.
"With increasing market volatility expected within a persistently low yield environment, we wish to take advantage of the prevailing risk premiums whilst they continue to present."
DFS is set to act as the sub-manager of the portfolio, with responsibility for its composition and management. The firm aims to initially invest $25 million after developing an institutional grade fund within the DomaCom fund, continuing to build the investment over time.