“That was a huge relief for our members and the wider industry,” Healy says. “It showed that when we engage collectively, with evidence and clarity, our voice carries weight. It also underscored the importance of staying vigilant. There’s always a chance the government could revisit it, so we’ll remain ready.” HELPING MEMBERS NAVIGATE LIQUIDITY AND COMPLIANCE Beyond headline advocacy, the Property Funds Association provides day-to-day guidance and a forum for members to raise operational or compliance challenges. Through its Issues and Regulatory Committee, members can submit concerns and receive advice or have matters escalated for collective consideration. Among the recurring topics of discussion is liquidity—a complex issue for property-based funds, where underlying assets are inherently illiquid. “There are two main fund structures we see,” Healy explains. “Closed-ended special purpose vehicles, which typically operate for a fixed term and don’t allow withdrawals until the end, and open-ended funds, which allow redemptions and applications on an ongoing basis. The challenge for open-ended funds is that property isn’t like shares—you can’t sell a building overnight.” To manage liquidity risk, many funds limit redemptions to around 10% of the fund’s value per year, paid quarterly. If redemption requests exceed that threshold, funds may “gate” withdrawals and establish an orderly queue. “ASIC keeps a close eye on how funds handle liquidity,” Healy says.“It’s always a topic of interest at our meetings. The key is ensuring transparency and investor understanding—something our members take very seriously.” EVENTS, EDUCATION, AND CONNECTION While regulatory advocacy forms the backbone of the PFA’s work, its member engagement and educational events have become equally vital to the association’s growing relevance. 139 BUSINESS VIEW OCEANIA VOLUME 07, ISSUE 10 PROPERTY FUNDS ASSOCIATION OF AUSTRALIA
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