Established in 1967
Portfolio Management Services was established in 1967, operating initially in the inner Melbourne suburb of Collingwood. At that time this locality reflected the focus of our residential investment property buying and management, and our consistent belief in the future of inner city property as a secure growth investment.
Today the original principles established by Portfolio Management Services for successful residential property investment and management have been illustrated in the unprecedented growth in the inner areas of Australia's major capitals and the high demand for established housing within 8 kms of the GPO, particularly in the major capitals of Australia. Our key objective is identifying and acquiring properties that will provide rewarding capital growth and increasing rental income.
- Portfolio Management Services established in 1967 by founder and current MD Jock Bing.
- Three decades developing and refining a respected market philosophy and a demonstrably sound property investment strategy.
- Today some 500 clients have aggregate property investment portfolios approaching $200 million with Portfolio Management Services.
- Portfolio Management Services is continually expanding investment property buying and commercial and residential investment property management services to satisfy increasing investor demands as part of 'do-it-yourself' and formal superannuation planning activities.
Portfolio Management Services - A History
Portfolio Management Services purchased its first residential investment property in 1967 when the company's current managing director Jock Bing left stock broking and joined forces with an ICI executive Warran Elliott, to establish what was then a unique investment company, specialising in the buying and managing residential and commercial investment property for private clients. Then as now, the company's philosophy is to make property investment as simple as investment in shares.
The company initially focused on buying residential property in Victoria and NSW. The residential investment focus was on the then relatively unfashionable inner suburbs of Melbourne, and to a lesser extent Sydney. Jock and Warran soon recognised a counter-cyclical relationship between Australia's two major eastern capitals and in the mid-eighties moved a proportion of client property portfolios into Sydney residential properties. Over time, the performance of these investment property markets has been exceptional, outperforming most other comparable investments over the last ten years, including the All Industrials Index.
1980s Outshore Expansion
In the late 1980s Portfolio Management Services saw a new counter-cyclical property investment opportunity in London's inner suburbs and began the company's first overseas client register, moving a number of larger clients into this offshore investment property opportunity. Foreign ownership tax considerations and the high cost of entry into the London residential investment property market in Australian dollar terms, however, meant that too small a proportion of clients could benefit, and Portfolio Management Services refocused on the Australian property investment market.
The market fundamentals for property investment in Australia changed dramatically from the early seventies, with high interest rates and substantial inflation. During this time Portfolio Management Services discovered that its property investment philosophy and formula worked equally well in this environment. In 1988 an independent analysis of the Portfolio Management Services investment performance, by chartered accountants Ernst and Young, was undertaken. Using an accumulation index constructed on conservative assumptions, the analysis revealed that a property investment made with Portfolio Management Services gave an internal rate of return of over 30% per annum compared to 19.3% by the property trust index over the same period.
Rapid Expansion through the 1990s
The boom in self-funded retirement through the 1990s saw direct property investment become an established part of the Australian investment portfolio. Increasing numbers of early retirees and superannuation clients led to a corresponding boom in financial planning. During this period a number of developers together with offshore investors used this opportunity to establish the 'inner city residential boom' - primarily through the aggressive marketing of strata title apartments. Residential property investment became a mantra and a new era began in Australia, where everyone could be an expert in property investment
Portfolio Management Services Refines a Winning Formula and Sticks to It
Portfolio Management Services has continued its focus on established housing as their prime residential investment property focus, rather than relying on largely artificial returns supported by developer's guarantees and depreciation schedules. The company concentrated on buying investment property in the largely undiscovered and less popular western and northern suburbs in Melbourne and Sydney. Today these suburbs are still showing substantial investment returns over market in client investment property portfolios. The company believes that, if the investment property fundamentals are adhered to, select residential and commercial investment property still has the ability to outperform comparable investments.
A recent statistical analysis and valuation of the Portfolio Management Services'
Track Record in residential property investments, completed in June 2006 by independent valuers Charter Keck Cramer, underlines the continuing success of this formula.
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