Agribusiness firm Great Southern has confirmed its intention to push ahead with new managed investment scheme (MIS) projects in 2009.
Great Southern’s plan to roll out new MIS projects comes just weeks after rival Timbercorp announced it would not offer new MIS options in the coming year.
“No one is predicting a boom year for the sector … but we now have our major competitor choosing to stand out of the market, so we still believe there are opportunities notwithstanding the fact that it is a tougher environment for a lot of our clients,” Great Southern communications manager David Ikin said.
Timbercorp informed the market in late November of its plans to exit the MIS market as part of its strategic review.
“While there will be no new MIS projects in the short-term, Timbercorp retains its existing portfolio based on MIS and is committed to maximising returns from the more than 19,000 investors who have invested in the company’s projects,” Timbercorp told the stock exchange.
“We will also revisit the decision on MIS in 2010 in light of any improvement in the economic and regulatory conditions.”
Great Southern also undertook a strategic review of its business earlier this year, with a view to reducing costs a key priority.
The firm confirmed in July it had made a number of redundancies across its sales and marketing teams in a bid to reduce costs within the business.
“There have not been any further staff cuts but we have consolidated some buildings to reduce rent and I am sure Great Southern is not alone in doing so. I am sure there are businesses in almost every sector of the economy doing similar things,” Ikin said.
