NGS Super plans to give members the option to invest in property directly through a recent mandate it awarded to Five Capital.
The investment option will be facilitated under a new direct investment offering the fund will launch in November which will include ASX300, exchange-traded funds (ETFs) and term deposits.
NGS Super chief executive Anthony Rodwell-Ball said the fund would assess the expansion of its new investment option to include direct property.
“In time, we will look to expand that product suite to perhaps give direct look-through to the property mandate that we’ve established and we’re investing in as we speak,” he said.
The fund recently awarded a mandate to Five Capital to support its move away from unlisted property towards direct industrial property. Rodwell-Ball said it would invest $150 million over time depending on the stock available.
The fund now has property in Victoria and Sydney and is looking to increase property investment in Sydney and Brisbane.
“Members like property and they like the ability to invest in property as part of a self-managed super fund option,” Rodwell-Ball said.
“If we’re going to go to market with a direct investment option that allows people to trade ASX, the other thing they might well want is some visibility of property.
“We can’t offer them individual or residential property, but it’s the next best thing.”
Rodwell-Ball said the fund’s property assets needed to have good tenants, long-term leases and yield within a specified range. It would provide more certainty, less volatility and reduce the fund’s management expense ratio significantly.
It will launch its direct investment option on 1 November through Mercer.
