6 May 2024
Over the past 30 years, PMG has built our funds under management to more than $550m by creating strategic investment offerings for retail and wholesale investors that can endure over time. Driven by a highly experienced in-house team, our investment strategy revolves around taking a long-term view to investing in a diverse array of commercial properties, with a focus on actively growing income and adding value.
In this blog, PMG Fund Manager Mike Barton shares insights into how experience and historical data can shape our thinking and strategy over time.
Understanding the ebbs and flows of the market is crucial for making informed decisions that can drive better returns. Over the years, our team has honed our expertise, leveraging experience in addition to past insights and forecast data, to inform our decisions. In an industry driven by external market cycles, these insights help to guide us towards opportunities and navigate potential challenges.
Learning from the past
Experience has taught us the significance of diversification when it comes to selecting the locations and types of properties we invest in. Spreading investor funds across a diverse array of commercial properties has proven to be a prudent strategy. Maintaining an appropriately balanced portfolio diversified across sector, region, and tenant, positions us to be better equipped to weather market fluctuations and better preserve investor capital. Not only can diversification help mitigate risk, but it can also enable market opportunities to be embraced when they arise and support our ability to capitalise on emerging trends.
One of the most valuable lessons we've learned is the importance of adaptability. Markets fluctuate, economic conditions shift, and trends come and go. What worked yesterday may not necessarily work tomorrow. By analysing historical information, we can anticipate trends and adjust our investment approach accordingly. This proactive approach is instrumental in maximising risk-adjusted returns.
Strategic collaboration
In addition to historical information and experience, building strong relationships within the industry is crucial to decision-making and evolving sound strategy.
Collaborating with reputable partners across the market, including agents, valuers, research houses and tenants, provides us with access to exclusive insights and opportunities that enhance our market intelligence. This enables us to strategically position our products for success and capitalise on opportunities when they present.
Fostering innovation for long-term growth
However, as fund managers our role is about more than just having access to market intelligence and opportunities.
While you can have the best-laid plans, and experience, relationships and historical data are invaluable to provide a solid foundation, they're not the sole determinants of success. By fostering a culture of continuous learning and innovation, while leaning on the fundamentals of sound commercial property investment, we can stay active, adapt to emerging trends and take advantage of unique opportunities.
At PMG, personal relationships and the ability to execute will always be our number one priority. However, being innovative, using tech and analytics helps us to continuously improve the way we work by making use of novel technologies available, whether that be powerful data analytics, predictive modelling, or harnessing AI.
Building robust, resilient portfolios
We don’t claim to be able to predict the future. However, we strive to understand the past, leverage our valuable knowledge and network, and combine this with relevant analysis and research, to create a more accurate picture of how investment products may perform through different economic cycles, and different investment scenarios.
Our hands-on, proactive approach enables us to plan informed decisions at optimal times, while appropriately managing risk. Aligning our actions with extensive market information, combined with a wealth of in-house and partner expertise, enables us to foster robust, resilient portfolios and optimise investor returns.
Using our experience and grey hairs earned through multiple economic cycles, alongside our access to relevant market data, positions us well to set a robust strategy, informed by learnings from the past and our vision for the future. As we continue to navigate the intricacies of the New Zealand commercial real estate market, we remain committed to staying ahead of the curve and capitalising on new opportunities that arise for the benefit of our investors.
Learn more about PMG’s funds here.
This article is part of our Investor Education Series, designed to build understanding and confidence across your investment journey with PMG. Stay tuned for more topics soon.
Disclaimer: The information in this blog is of a general nature and was current on 1 May 2024. It is not intended to be regulated financial advice for the purpose of the Financial Markets Conduct Act 2013 and does not take your individual circumstances and financial situation into account. PMG does not provide financial advice. Please seek advice from a licenced financial advice provider before making any investment decisions.
