Property Funds Association of Australia

Proudly Representing its Members

A Steady Voice for Australia’s Unlisted Property Fund Managers

In an industry as dynamic and complex as property funds management, consistency, clarity, and collaboration are critical. For more than two decades, the Property Funds Association of Australia (PFA) has been that steady voice—representing the interests of unlisted property fund managers, advocating for balanced regulation, and providing members with a trusted network of peers navigating a shared landscape.

While the association remains modest in size, its influence and reputation have grown significantly under the leadership of CEO Paul Healy, who joined the organization in 2013. Since then, PFA has evolved from a niche body into a recognized advocate for one of the most important segments of Australia’s investment ecosystem: unlisted retail and wholesale property funds.

“We represent primarily the unlisted retail property funds management industry,” says Healy.

“But our membership also includes wholesale fund managers, listed REITs that operate unlisted funds within their product suite, as well as service providers such as accountants, lawyers, valuers, and trustee companies. Collectively, they form the core of our association and help us stay connected to the broader funds management community.”

Building Relevance and Reach

When Healy took the helm, PFA counted around 30 corporate members. Today, that number has nearly tripled to 80, with continued growth on the horizon. The expansion is not just quantitative—it also reflects the association’s deepening engagement with regulators, policymakers, and the industry at large.

“Across the association landscape, it’s not unusual to see 8–10% of members drop off each year,” Healy notes. “Sometimes it’s about budget, sometimes perceived value, or simply a lack of participation. But our growth trajectory has remained positive. Our aim is to reach 100 members, and we think that’s achievable. If we attract more fund managers, the service providers naturally follow.”

That focus on relevance and responsiveness has become a hallmark of the PFA approach. At its heart, the association’s mission is simple but far-reaching: to assist fund managers in the conduct of their business—helping them stay informed, compliant, and competitive in a rapidly evolving regulatory environment.

Working Hand-in-Hand with the Regulator

One of the defining strengths of the Property Funds Association is its proactive engagement with the Australian Securities and Investments Commission (ASIC). The association meets with ASIC twice a year, maintaining an open dialogue on the regulatory issues that shape the property funds landscape.

“These meetings are designed to be collaborative,” explains Healy. “ASIC tables questions for us, we table questions for them, and the goal is always a constructive discussion about how regulatory developments affect our members. It’s a strong, professional relationship built on mutual respect.”

That engagement proved invaluable during one of the industry’s most significant advocacy battles in recent memory—the proposed reforms to the wholesale investor test.

Under the proposed changes, the monetary thresholds for the wholesale tests, and particularly the asset and income tests, would have significantly increased. For many current investors, this would have meant losing access to wholesale investment products altogether.

“The potential impact was enormous,” Healy recalls. “Many of our fund managers only hold wholesale licenses. If those investors were reclassified as retail, they simply couldn’t participate in those funds. It could have forced fund wind-ups, asset fire-sales, and significant business disruption.”

Recognizing the threat, PFA mobilized quickly. Working alongside other industry bodies, including the Property Council of Australia, the association made a detailed submission and appeared before a Parliamentary Joint Committee to argue its case.

The outcome was a major win—the government decided not to proceed with the changes.

“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.

The highlight of the year is the PFA Annual Conference, held most recently on the Gold Coast. This year’s event drew a record 144 delegates, a testament to both the association’s expanding footprint and its focus on quality over quantity.

“The conference is deliberately intimate in scale,” says Healy. “We’re not trying to be a huge convention like the Property Council events. Ours attracts senior decision-makers, and the networking opportunities are unparalleled. The discussions are deep, relevant, and collaborative.”

Beyond the annual conference, PFA hosts masterclasses in Melbourne, Sydney, and Brisbane, each featuring several speakers addressing timely industry issues, followed by networking drinks. Smaller, boardroom lunches bring together around 20 members for in-depth conversations on market conditions and regulatory topics—events that have become a hallmark of the association’s approach to community-building.

“We have one this week hosted by SW Australia,” Healy shares. “Our Issues and Regulatory Committee Chair, Harry New, will be there to discuss emerging topics, and we’ll go around the table to hear everyone’s perspectives. These are very popular because they’re interactive and personal.”

PFA also organizes Christmas networking events and other social gatherings, all free to members—a tangible expression of the association’s commitment to delivering value.

“We’re proud of the value proposition we offer,” Healy says. “Our members pay a modest fee, and in return, they gain access to high-quality networking, direct regulatory representation, and educational opportunities that help them operate better businesses.”

Structure, Governance, and Diversity

Behind the scenes, the PFA runs with a lean team of five, supported by an active and engaged Executive Committee.

The Executive Committee, comprising up to 12 volunteer representatives from member organizations, meets monthly to oversee the association’s direction and initiatives.

“We currently have 11 committee members, a mix of fund managers and service providers,” says Healy. “They’re all volunteers who give their time because they believe in the industry. We couldn’t do it without them.”

Diversity remains an important focus for the PFA as it continues to evolve. The association actively promotes women’s participation in all events and initiatives, encouraging gender balance in both leadership and speaker representation.

“Gender diversity is very important to us,” Healy emphasizes. “We’re committed to ensuring women have visible and meaningful roles in our industry conversations.”

Staying Relevant in a Changing Market

Looking ahead, PFA’s priorities remain centered on advocacy, relevance, and responsiveness. Rather than launching grand new projects, the focus is on staying adaptable—ready to respond quickly to industry challenges as they emerge.

“The most important thing is to stay abreast of what’s happening across the sector,” says Healy. “When issues arise, we get on the front foot, meet deadlines, and represent our members effectively. That’s what they rely on us for.”

The association’s annual Almanac, published each year, captures this ongoing journey—summarizing events, committees, and achievements while spotlighting the evolving dynamics of the funds management landscape. The 2024 edition, Healy notes, highlights another successful year of growth and engagement.

As for how he sees the PFA’s role in the broader property and investment ecosystem, Healy strikes a balanced note of pride and pragmatism.

“We’re not trying to be a titan like the Property Council,” he reflects. “We’re a focused, not-for-profit association that exists to support the fund managers who are building and managing real assets across the country.”

“We may be small, but we’re highly relevant—and our members know we’re in their corner,” he concluded.

In a sector often defined by complexity, the Property Funds Association stands as a bridge between regulators, fund managers, and investors—a place where advocacy meets collaboration and where even the smallest members have a powerful voice.

For Australia’s unlisted property funds community, that voice has never been more necessary—or more effective.

AT A GLANCE:

Name: Property Funds Association of Australia (PFA)
What: The association representing the interests of unlisted property fund managers, advocating for balanced regulation, and providing members with a trusted network of peers navigating a shared landscape.

Where: Melbourne, Australia

Website: www.propertyfunds.org.au
Contact: info@propertyfunds.org.au