Premium China Funds Management (PCFM) is set to boost the distribution of its property fund via more platforms and dealer groups after it soared nearly 70 per cent in the past year.
PCFM head of distribution and operations Jonathan Wu said the firm is in discussions to add the Premium SAM Asia Property Fund to several financial planning firms' approved product lists and to the investment menus of a number of large platform providers.
The fund, launched in June 2008, has raised around $40 million and was recently added to Colonial First State's FirstWrap and the Netwealth platform. It is also available on Macquarie Wrap, BT Wrap and the Oasis platform.
PCFM has also struck a deal to add the Premium SAM Asia Property Fund to the Oasis-badged platform Strategy, used by dealer group Australian Financial Services.
The Premium SAM Asia Property Fund rallied 67.8 per cent in the 12 months to 31 August 2009.
Wu attributed the fund's performance to the strong fundamentals of the Asian property market, superior stock selection, shorting futures and holding higher levels of cash.
Since China's government announced a $673 billion stimulus package in November 2008, corporate lending has increased dramatically towards all sectors, including property development.
That has sparked a new development boom in China and helped power the securities within the fund, Wu said.
The fact the fund does not have any gearing is also a big attraction, he said.
"We have also undertaken extensive liquidity tests each month and 95 per cent of the fund can be converted to cash within five trading days," Wu said.
