The core skill for a property funds manager must be risk management.  Kinsmen uses a very formal and clearly defined process that relies on scientific measurement of risk factors.  This approach requires an exceptionally high degree of skill and experience, as well as the corporate discipline to consistently apply the methodology to all portfolio decisions.  Our mantra is "identify risk, measure risk and manage risk".

  • Identifying risk requires a great deal of research into market conditions and a thorough understanding of the property industry.  Property professionals understand that there is no such thing as "the property market" and that successful property investment requires the skills to disaggregate broad markets into micro-markets and to analyse those micro-markets with professional tools.  Kinsmen's management has many years experience in this type of analysis and the skills to interpret and use it effectively.

  • Measuring risk is a key step that requires specialised skills that much of the property industry does not utilise.  Kinsmen uses proven methods to measure risk, which then informs our management and pricing policies.  If you don't accurately measure risk then your chances of managing it effectively are diminished.  If you don't accurately measure risks then your chances of pricing it correctly are almost non-existent.  Pricing risk is a critical skill for any property investor because it is such a crucial factor in determining the feasibility of any investment or development project.  Kinsmen is an Australian market leader in property risk measurement.

  • Managing risk is the value adding activity that a professional property funds manager brings to its investors.  In many parts of the property industry, managing risk consists merely of attempting to pass risk on to third parties.  Kinsmen uses its skills to carefully structure property projects such that as many risks as practical are eliminated.  Then, when no further elimination is possible, the residual risks are allocated to the parties best able to bear them.  This involves paying parties to take risk, so our skills in pricing risk are crucial in ensuring that we are paying correct prices to mitigate risk.

Kinsmen has made significant investment in software, hardware and training to ensure that the investment and property professionals within Kinsmen have the skills and experience to use the Kinsmen risk framework and to maintain the high standards that have been established.