Two PMG funds recommended by investment research house
31 August 2018
PMG one of the first unlisted fund managers to receive two AA rankings by FundSource
TAURANGA, 27 August 2018 – Property Managers Group (PMG) has received “AA" ratings for two of its investment funds by one of the country’s leading, independent investment research house, NZX-owned FundSource – making it one of the first unlisted fund and property managers to achieve this.
PMG achieved the two FundSource ‘AA’ ratings for its diversified fund, Pacific Property Fund Limited (PPF) and PMG Direct Office Fund (PMG DOF). This places both portfolios in the top 20% of the 56 funds currently rated by FundSource.
The FundSource report said it ‘is impressed by the PMG investment philosophy’, and that the PPF model ‘is not readily replicable by an individual investor.’
It also mentioned PMG DOF ‘is a unique offering in the New Zealand market’ and referenced PMG’s 25-year history, ‘surviving natural and financial market issues since inception’ and with its ‘more recent diversification of capital sources, should see PMG remain a sustainable business.
Northington Partners, which is highly-regarded for its in-depth quantitative research and financial analysis, has also appraised PPF and PMG DOF. For PPF the Northington report found that from a yield perspective, the fund is performing better than the majority of its listed and unlisted peers, has delivered a commendable track record of shareholder returns, as well as having below average issuance costs relative to other unlisted property investment entities (which are the costs of raising new capital).
PMG CEO, Scott McKenzie, says he and the PMG team are thrilled two of their funds have received these accolades.
“This recognition, by two well-regarded investment research bodies, not only publicly acknowledge the strong performance, structure and sustainability of PPF and PMG DOF it also reconfirms to us that, as a management team, we are doing the right thing to look after our investors’ interests,” says McKenzie.
“While not on a listed platform, PMG’s funds have demonstrated strong secondary liquidity, trading in some cases at similar relative volumes to listed property entities.
“What unlisted property funds do provide is greater stability in value and regular returns, relative to listed vehicles. Unlisted property funds also, generally, provide greater liquidity than directly held or syndicated investment offerings,” says McKenzie.
“At PMG we are focused on delivering regular cash returns and building sustainable growth and value overtime for our clients’ investments. We do this by offering diversified investment portfolios, managed by our in-house property management experts. This means our investors can enjoy watching their wealth grow without having to roll their sleeves up with the challenges of day to day property management.
“Our purpose is to create value and security for people in property and these ratings should suggest to investors that we are doing just that,” says McKenzie.
PMG is intending to bring two new offers to the market in September for its PMG Direct Childcare Fund and its real estate private equity fund, PMG Capital Fund Limited. To find out more about these pending offers, see www.propertymgr.co.nz or contact Matt McHardy in Tauranga on (07) 578 3494, Mat Harvie in Auckland on (027) 549 7229, or Sarah Ramsay in the South Island on (021) 552 240.
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PMG is one of New Zealand’s most established and trusted private property and fund managers. For 25 years PMG has been invested in delivering long term sustainability and value for investors through proactive management and portfolio diversification.
PMG’s mission is to create value for people in property. It does this by offering a range of property portfolios which cater for the differing needs of investors providing them with choice, diversification and sustainable income.
The portfolios PMG offers and manages on behalf of investors includes Pacific Property Fund Limited, a vehicle which invests in geographically and category diverse properties, and portfolios which invest in category specific assets including PMG Direct Office Fund, PMG Direct Childcare Fund, and PMG Capital Fund Limited.
FundSource is New Zealand's leading investment research house, supplying analysis to financial advisers and fund managers since 1987. FundSource is a well-known and trusted brand in the New Zealand market.
FundSource produces quantitative research and offers insightful industry reports which can be subscribed to.
As a wholly owned subsidiary of NZX Limited, FundSource realise the importance of supporting and praising excellence in the industry, which is why FundSource recognises the achievements made by fund managers with our annual FundSource Awards. FundSource's research is used to judge these prestigious awards.
About Northington Partners
Northington Partners is a leading independent investment bank and corporate advisory business, servicing a diverse client base from offices in Auckland and Christchurch.
Northington services provides a high-quality mix of expertise, experience and relationships that is unique in the New Zealand market, allowing it to offer a full range of corporate advisory and investment banking services, including conducting independent investment research reports to private and public companies.