Sales in agribusiness managed investment schemes [MIS] have topped $1.26 billion, up 6 per cent from 2006, according to research house Adviser Edge.
Its success is despite drought, irrigation water security concerns and Australian Tax Office rulings affecting the sector.
“In past years all the gains have come from the likes of Great Southern, Timbercorp and Macquarie, whereas this year the boutique fund managers have increased sales, in many cases well in excess of 2006 levels,” Adviser Edge managing director Shane Kelly said.
Gunns Plantations and Willmott Forests preformed well, up 98 per cent and 20 per cent respectively.
Companies relatively unknown outside of the MIS sector, like Rewards Group, Australian Agricultural Contracts, Australian Bight Abalone and Almond Investors were largely responsible for the financial gain, the research showed.
“Stand out sectors were horticulture, which accounted for over $335 million and high value timber, which at $275 million, or over 20 per cent of total sales, has undoubtedly taken market share away from pulpwood,” Kelly said.
“The announcement of a secondary market for timber has no doubt helped and when non-forestry projects leave the market in 2009 expect to see the high value timber market attract even more attention,” he said.
In the horticulture sector, olives and nut crops, had bumper sales of around $100 million and $168 million respectively.
The Adviser Edge survey measures 2007 MIS investment based on funds committed over the first three years of a project.
