Information for advisers
Cromwell Funds Management Limited (Cromwell or CFM) is part of the ASX-Listed Cromwell Property Group (ASX:CMW), an Australian real estate investor and manager that has owned, managed and invested in commercial property since 1998.
Cromwell utilises real expertise to invest in real assets and deliver real returns for your clients.
We aim to build investor wealth through the careful selection, acquisition and management of secure, income-producing commercial properties and portfolios.
Cromwell’s suite of investment opportunities offers access primarily to unlisted property trusts and ASX-listed Real Estate Investment Trusts (A-REITs), providing different methods of investing in commercial property and diversifying your client’s portfolio.
Our open funds
Cromwell Direct Property Fund
Colonial First State (CFS) First Wrap
Cromwell Phoenix Property Securities Fund
Colonial First State (CFS) First Wrap
Commercial property investing basics
We understand investing in commercial property, particularly unlisted property funds, forms a small part of a managed account, if they’re even included at all. With this in mind, if you’re new to investing in property or need a refresher, we’ve put together resources to help you and your clients understand everything there is to know about investing in real assets.
Want to understand more about commercial property investment?
Looking for the latest property research and insight from our team?
Learn about our people and our funds
Unlisted direct property funds are the cornerstone on which Cromwell was built. Two adjoining office buildings in Brisbane’s Fortitude Valley, which were acquired in June 1999 for $13.6 million (and later sold in September 2015 for $31 million), kickstarted Cromwell’s track record of identifying, acquiring and managing income-producing commercial properties and portfolios.
Unlisted property funds provide an investment with characteristics most like a direct purchase of a commercial property, with the added benefit of professional management. As unlisted property funds are generally priced based on the underlying valuation of their assets, their price volatility is a lot lower than A-REITs and the value of the investment is primarily influenced by movements in the commercial property market, rather than by the broader share market.
CFM offers two types of unlisted property funds – open-end funds and fixed-term, closed-end trusts (or syndicates).
Cromwell Funds Management specialises in the creation, structuring, marketing and management of unlisted, property-related investment opportunities. In addition to utilising this funds management capability and acting as the responsible entity of each investment opportunity, CFM employs the in-depth property knowledge and experience of Cromwell Property Group to maximise performance.
Cromwell Property Group provides a full suite of property-related services, including transaction sourcing, due diligence, property management, leasing, asset enhancement and realisation.
Where many competitors outsource responsibility for the day-to-day management of their properties, Cromwell Property Group actively manage all properties in-house. This integrated property management model means the asset management team oversees the strategy for each property, ensuring tenants are content, space is leased, buildings are operating efficiently and projects are delivered on time and within budget.
Keeping these functions in-house ensures assets are managed in accordance with the interests of investors and to the expectations of tenants.
Cromwell leans on its long-term partnership and the expertise of boutique equity investment manager, Phoenix Portfolios (Phoenix), when it comes to our listed funds.
Cromwell Funds Management’s listed property securities funds invest predominately in a wide range of A-REITs and can be traded just like any other share. The wide variety of A-REITs available, the large asset diversification generally within each A-REIT and their high level of liquidity are strong positives.
Cromwell’s partnership with Phoenix Portfolios, who are specialists in active, ‘benchmark unaware’ property securities investing separates us from our competition. The ‘benchmark unaware’ strategy has resulted in the Cromwell Phoenix Property Securities Fund outperforming the S&P/ASX300 A-REIT Accumulation Index over the long term.
Phoenix believes smaller stocks are typically under-researched relative to their larger peers and therefore more likely to be attractively priced. As such, despite many of these stocks possessing compelling investment fundamentals, they are often overlooked by many fund managers.
‘Benchmark unaware’, Phoenix is able to diversify exposure past stocks in the relative benchmark index and gain a bigger slice of the smaller stocks.
About Phoenix Portfolios
Established in 2006, Phoenix Portfolios is a boutique investment manager which has built a strong track record across a variety of A-REIT mandates, property securities funds and microcap securities, culminating in numerous industry awards.
Phoenix seek to be experts in niche sectors of the market, including property, infrastructure and small/microcap stocks. Phoenix’s focus on in-depth research provides a knowledge-based competitive edge. Jointly owned by staff and Cromwell Property Group, this ownership model promotes long-term stability and alignment of interests between employees and investors. Cromwell is an active participant in direct property markets and provides valuable insights into the Phoenix research process.
Phoenix has outsourced all non-investment functions to specialist providers, enabling the team to focus solely on investment activities.
Our track record
CFM has a strong track record managing unlisted direct property funds. Find out more about the performance of our fully subscribed and closed investment funds here.
Cromwell’s approach to property is characterised by a belief in the cyclicality of markets. We have a strong focus on governance, compliance, and oversight which gives us the confidence to time entry and exit from markets. Read about our successes here.
- Applications for Cromwell Direct Property Fund are temporarily suspended, with likely reinstatement in early 2024. Please refer to continuous disclosure notice dated 20 November 2023 for further information.
- As at 31 October 2023. After fees and costs. Performance data for periods longer than one year have been annualised. Past performance is not a reliable indicator of future performance.
- Capital growth and income distributions are not guaranteed and are subject to the assumptions and risks contained in the PDS. Past performance is not a reliable indicator of future performance.
- S&P/ASX300 A-REIT Accumulation Index.