May 11, 2021
As the International Property Securities Exchange (IPSX) readies itself for its first admission onto the Exchange, Roger Clarke - Head of Capital Markets - sat down with Alexandra Newlove, the Editor of PAM Wealthnet for a wide-ranging discussion for the Entrepreneurs Podcast to discuss how single-asset REIT investment is set to revolutionise commercial property investment and become a cornerstone of Wealth Management portfolios.
“What we are doing is not that revolutionary, but we are changing the world. We are bringing liquidity to an otherwise illiquid market where commercial Real Estate deals can take months to conclude. On IPSX you can complete a trade rapidly through recognised market makers with all the interconnectivity and transparency of reporting and enhanced analytics. Compare that with being gated in an open-ended fund. It’s a whole different concept.”
IPSX will be launching with liquidity provided by well-known market makers such as Panmure Gordon, Canaccord Genuity, Peel Hunt and WH Ireland.
Roger Clarke also highlighted the structural difficulties that the larger wealth managers have in seeking yield. “Regulatory and group cost pressures have forced consolidation and that means the larger wealth managers have increasingly more customers and due to their scale, it means they have to focus on large cap mainstream investments. This creates very crowded trades and it’s an opportunity for smaller firms to look beyond the obvious when selecting investments – particularly for income and yield…we are definitely seeing the re-emergence of the small cap specialists at smaller wealth managers”.
“Across the waterfront wealth managers are looking for new sources of income and diversification and whilst the brave may look at digital currencies, most are looking at traditional asset-backed income sources such as infrastructure and Real Estate. Clients like Real Estate. They feel they understand Real Estate. But it’s a closed world. The Property Fund market has had its issues and it’s interesting to see Hargreaves Lansdown commentary that showed their revenue from fund trading was flat during 2020 whilst single stock trading revenues were up by nearly 150%*. Clients increasingly want to select single assets and that’s exactly what we are giving them with single-asset Real Estate investing through IPSX.”
And whilst the highly correlated stock market can see equities weighed down by market sentiment, IPSX is offering a highly attractive uncorrelated exchange as Clarke says; “Assets are going to trade like Real Estate and not like equities” allowing investors access to a “securitised, regulated, listed and liquid market.”
The full Wealthnet Entrepreneurs Podcast with Alexandra Newlove can be downloaded here.
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* Hargreaves Lansdown plc interim results for the six-month period ended 31 December 2020.
**Roger Clarke is available for immediate interview about the Exchange, REIT Funds, Open-Ended and Closed Funds, and Real Estate investing. Please see contact details below.**
Notes to Editors
IPSX Group Limited is a market infrastructure and data products business and dedicated to real assets – initially real estate. Its wholly owned subsidiary, IPSX UK Limited is designated as a Recognised Investment Exchange by the FCA and will operate a regulated market in the UK.
IPSX’s shareholders include major international real estate investment groups and private equity investors representing the majority of the shareholder base alongside IPSX directors, employees and other private investors.
The boards and senior management team of IPSX Group Limited (see https://www.ipsx.com/investor-relations/ ) and IPSX UK Limited ( https://www.ipsx.com/team/ ) comprise highly qualified individuals with market infrastructure, equity capital markets, real estate, data, asset management and public company experience.
For further information visit: www.ipsx.com
For all press enquiries please contact:
Kevin Marriott, Head of Marketing and Communications
firstname.lastname@example.org or +44 7795 464 550
Yellow Jersey PR
Magnus Wheatley / Alex Crean
Ipsx@yellowjersey.com or +44 7501 523129