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Agribusiness investors urged to check commissionsAustralian agribusiness investors have been warned to check the commission their financial planners receive and to access independent research themselves, before making a decision on an investment. In a series of investment tips released today by the Australian Agribusiness Group, investors were advised to also consider a fee-for-service discount broker. “... but remember that commissions can reduce the upfront fees your adviser charges you for your financial plan,” added AAG. The advice follows earlier claims by AAG that agribusiness commissions are too high, and that such excessive commissions were preventing agribusiness from becoming a mainstream asset class. It also follows warnings by independent dealer group Count Financial managing director Barry Lambert that more collapses on the scale of Westpoint were on the way, but this time in the agribusiness sector, where he said commissions paid to advisers upward of 15 per cent were commonplace. AAG managing director Marcus Elgin also told investors to go into agribusiness investment just to save tax were making a mistake. “Investing in pure tax deduction is a feeble strategy. If you are going to invest in agribusiness managed investment schemes, then follow the same rules you use when investing in property or equities: research the sector; research the manager; understand track record; and understand the offer. Elgin also encouraged investors to diversify across a number of different crops in various locations to reduce risk. 19/04/2006 source: Money Management |