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HALO Technologies Acquires Strategic Stake In Fractional Investment Platform

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

Industry leading investment research platform HALO Technologies has announced its acquisition of a strategic cornerstone investment in ASX listed micro-cap DomaCom Australia Limited (DomaCom) (ASX: DCL), the owner and operator of the DomaCom fractional investment platform (http://www.domacom.com). 

Halo - 1

The DomaCom platform provides an innovative opportunity for the SMSF market and other long-term investors to invest in fractions of a range of assets including property, mortgage backed securities and debt securities via a unique trust structure.

 

The fractional Investment market

DomaCom is a disruptor in the property investment market.  Fractional investing is particularly suited to property investors seeking to diversify investment portfolios across multiple properties or for those with limited funds looking for exposure to the property market.  It can also provide a foothold into the property market for younger homebuyers unable to afford the purchase of an entire property.

Discussing a University of South Australia report on fractional investment in Australian residential property with Smart Property Investment, lead researcher Dr Braam Lowies said that this tech-based investment method has paved the way for Millennial interest in particular due to growing with consistently rapidly evolving technology.

Dr Lowies said: [1]

Technological advances have created new investment opportunities in the online environment, many of which naturally appeal to the younger generation

The Uni SA report shows that the age distribution of fractional investors is skewed toward younger investors – 18 to 34 year olds comprised 44% the sample, with 37% aged between 25 and 34. Ease of access is highlighted as a key feature of this investment platform and may have facilitated those without knowledge of the platform to invest in it, with 92% saying that ease of access to the investment assisted in their decision to invest.[2]

 

A strategic investment in a complementary business

DomaCom is a leader in facilitating fractional investing in Australia with many attractive attributes, including user platform functionality, reputation strength, and the value proposition of its product offering that uses a unique technological solution (the first of its kind in Australia).

DomaCom has a broad and growing investor base with access to a significant and stable new asset class, with substantial funds and assets on its platform. Its board and management teams are well known and highly experienced, especially in building a leading investment platform, and have a clear blueprint for growth. 

HALO has invested on favourable investment terms in an innovative business with strong prospects for growth, and provides DomaCom with the financial strength and liquidity to accelerate growth in its funds under management, along with expertise in growing a client base in the technology space. HALO has also negotiated significant contracts with DomaCom that will deliver business opportunities and income streams to it and other companies in the aaig group.

In addition to HALO’s cornerstone $3 million investment, DomaCom will raise a further $3 million via a proposed Non-Renounceable Rights Issue in November 2019. The rights issue is proposed to be fully underwritten by Ascot Securities Pty Ltd. DomaCom also proposes to appoint HALO’s Matthew Roberts and George Paxton to its board as non-executive directors on completion of the capital-raising transactions.

HALO Technologies’ CEO, Matthew Roberts said:

We are very excited to be able to partner with this very innovative business and to be able to use our extensive investor distribution and tech capability to accelerate DomaCom’s growth and achieve a mutually beneficial outcome.

In Australia and around the world, HALO continues on its strong growth trajectory and to expand its range of essential investment tools for financial advisors and self-directed investors alike. Its unique product and service combination and data overlay makes it the most comprehensive stock analysis toolkit available to investors in the market today.

[1] Can fractional investment really get you into the property market sooner?  Sasha Karen, https://www.smartpropertyinvestment.com.au/research/17887-can-fractional-investment-really-get-you-into-the-property-market-sooner, 23 April 2018.
[2]  Fractional Investment in Residential Property in Australia, B Lowies, R B Whait, C Viljoen & S McGreal ,University of South Australia, 20 April 2018

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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