It’s coming up 5 years since we launched the Private Land and Property Fund. And how things have changed in that time!
Back when we conceived the fund, interest rates had been persistently low. The low interest rates at that time were great if you had a mortgage but it was a different picture for investors who wanted income.
That’s why we created PLPF. We thought we could provide a great income solution by giving everyday Kiwis an option to access quality land and property-related investments, without the administrative work that comes with direct ownership.
Back then it was common to hear people complain about term deposit rates. Some of our advertising talked about this frustration, how PLPF aimed for better returns and that it was easy to access your money. We hoped that people would consider PLPF as one of their investment options as part of a diversified portfolio of investments.
The fund now comprises over $133 million in net assets across 15+ different properties with nearly 100,000 members directly invested or through Booster funds
When we reflect on the past few years managing land and property investments, a lot has changed but some things have remained constant. Our top call outs would be:
- Bank deposit rates are much higher (these aren’t a direct substitute for PLPF, they have a different risk rating)
- Inflation is up so real returns are lower
- Climatic events have increased the attention on crop risk (read more about how we manage this here)
- The nature of productive land investments remain quite different to rental properties investments
- It’s now more common for us to apply exit fees on large withdrawals but it’s still an option to sell on the on NZX (which doesn’t attract these fee).
Given the state of flux we have all lived through in recent times, if you not done so for some time, it’s a good idea to review your portfolio. We think PLPF still remains a great part of diversified portfolio.
Your investment adviser can assist you with this and will of course be able to help you look at the role of PLPF within your portfolio.
If you don't have an investment adviser and would like some assistance, please contact us directly.
