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INVESTMENT NEWS |
 2010 Budget Briefing (Colonial First State)The Treasurer has handed down the Federal Budget for the 2010/11 year. In response, Colonial First State have provided a summary of the relevant announcements and some strategies which could assist you. 13 May 2010 |
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Forest Enterprises Australia Limited (FEA) FEA Plantations Limited (FEA Plantations) At the first meeting of creditors scheduled to be held in Launceston, Tas on Tuesday, 27 April 2010, two resolutions are being considered:
Visit www.feagrowers.com for further information and register your contact details to keep up-to-date with developments important to FEA grower investors. 23 April 2010 |
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Amending Legislation to Protect Forestry MIS
Deductions The Government has released draft amending legislation, designed to protect an initial investor’s tax deductions if a CGT event occurs within four years of investment due to circumstances outside the investor’s control. ITC's Technical Service Manager Kim Cowie provides details of this proposed change, and examples of situations in which this protection could apply. 22 December 2009 |
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AACL partner company, Carbon Conscious, and
Origin agree large scale carbon forest sink
deal AACL, through its parent company Broadacre Asset Management Ltd, owns approximately 35% of Carbon Conscious. Carbon Conscious was listed on the ASX in May 2008 and is involved with planting native trees on lower productive land, in order to store or “sequest” carbon and to generate carbon credits for the upcoming Carbon Pollution Reduction Scheme. Carbon Conscious was developed because of AACL’s access to farmers and land, however, it does not operate as a managed investment scheme. 16 July 2009 |
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 Align Funds Management -
Timbercorp Almond Projects UpdateSam Baillieu (Shareholder Representative / Director) and Trevor Moyle (Independent Chairman) from Align Funds Management provide you with a current update as to their proposals for the Timbercorp Almond Projects. 23 June 2009 |
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Dealer groups call for Great Southern enquiryDealer groups want the government to set up an enquiry into failed agribusiness giant Great Southern. A number of dealer groups have called on the government to step in to help investors caught up in the collapse of agribusiness firm Great Southern. Representatives from Australian Financial Services (AFS) and IOOF-owned group Consultum Financial Advisers each voiced concern for investors at Great Southern's first creditors meeting held yesterday in Melbourne. 28 May 2009 |
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MIS forest managers growing wood for an
undersupplied domestic market In the torrent of media commentary about the recent collapse of major agribusiness managed investment scheme companies, Timbercorp and Great Southern, many of the statements made by the most vocal MIS detractors have been factually wrong or at best misleading, according to the Australian Plantation Products and Paper Industry Council (A3P). A3P CEO, Richard Stanton, said “One of the most bizarre generalisations is the MIS forestry companies are purely motivated by tax minimisation and management fees and have no interest in the forestry products they are growing for their investors, or the target markets for those products." 27 May 2009 |
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MIS business models The business models of both Timbercorp (TIM) and Great Southern (GTP) can be characterised by their high reliance on MIS sales on an annual basis. It is significant that both companies had previously recognised the problems associated with this model and, well before the appointment of voluntary administrators, were in the process of restructuring to a more sustainable strategy. The sustainability of the business model was only in part connected with the product structure of MIS projects. This is an important point and relevant to differentiate TIM and GTP from the other companies that remain in the sector, and continue with MIS projects. 26 - 27 May 2009 |
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Great Southern Limited - Administration
Bulletin No. 1 On Saturday May 16, 2009, Ferrier Hodgson partners Martin Jones, Andrew Saker, Darren Weaver and James Stewart were appointed Administrators of Great Southern Limited and 34 of its subsidiaries. These appointments were by the boards of each company and placed the Group under the control of the Administrators. 26 May 2009 |
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Wait For Conclusion - Minister Defends MIS Federal Agriculture Minister Tony Burke defended the managed investment scheme (MIS) model at Hamilton this week as MIS company Great Southern Ltd. went into receivership..... 21 May 2009 |
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Time for some MIS facts Australian Agribusiness Group (AAG) has been researching and rating agricultural investments, including Managed Investment Schemes, since 2000 - longer than any other research business. AAG also operates a consulting practice and manages a substantial portfolio (over $350m) of agricultural assets Australia wide. AAG knows MIS, and we know Australian agriculture. We have no illusions about either. 19 May 2009 |
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Plantation forestry offers a sound
investment and strong growth “Despite the recent news concerning two of the players in the agricultural managed investment schemes (MIS) sector, MIS-driven plantation forestry remains a solid industry with the offer of strong and increasing timber prices. The sector is poised for continued expansion,” said Allan Hansard, CEO National Association of Forest Industries (NAFI). 18 May 2009 |
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Great Southern Appoints Voluntary
Administrators It is with great regret we inform you that the Directors of Great Southern Limited and Great Southern Managers Australia Limited have appointed Martin Jones, Darren Weaver, Andrew Saker and James Stewart of Ferrier Hodgson as joint and several administrators of the companies and the majority of its subsidiaries. 18 May 2009 For further information you can also go to www.great-southern.com.au Other Related Updates
Almond Investors
Gunns Plantations
Macquarie Agribusiness
Rewards Group
Willmott Forests |
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Federal Budget 2009 Tough decisions in tough times. The pundits had been tipping a “horror budget” for weeks – a reasonable expectation given well-leaked warnings the deficit would rise to almost $60 billion and unemployment would peak at 8.5% by 2010. Surprisingly, the budget announcements by Wayne Swan last night were not particularly horrific within the context of a world wide recession and a massive blow-out in the deficit. Some cynics believe any real pain will not be felt until well after the next election, but the real reason for the unexpected tameness of this budget lies in the Reserve Bank of Australia’s (RBA) statement 2 weeks ago that this recession may be shallower than it was first perceived to be, with cautious optimism for a recovery beginning within the next 2 years. May 2009 |
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Willmott Forests launches timber fund Willmott Forests has defied the agribusiness gloom, launching a fund which the group sees as ideal for superannuation-style investors. Integrated forestry company Willmott Forests has launched a new investment vehicle, which the group sees as ideal for superannuation-style investors. 12 May 2009 |
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Timbercorp Appoints Voluntary Administrators Mr Mark Korda and Ms Leanne Chesser were today appointed voluntary administrators of Timbercorp Limited (ASX: TIM). Timbercorp is one of Australia’s largest agribusiness companies, managing approximately 120,000 hectares of large scale forestry and horticulture assets. Timbercorp has invested more than $2 billion in agribusiness projects on behalf of 18,500 investors since 1992. Mr Korda said the company had been hurt by the combined impact of declining global asset values, tightening credit, the economic downturn and drought. Mr Korda said the administrators would implement a three point plan.... 23 April 2009
Frequently Asked Questions – Grower
Investors
Frequently Asked Questions – ShareholdersOther Related Updates
AACL (Macro Funds)
Almond Investors
Forest Enterprises Australia Limited (FEA)
Great Southern
ITC Limited
Macquarie Agribusiness
TFS Corporation
Willmott Forests |
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Colonial First State Market Watch March 2009 Australia’s economic growth figures (as measured by gross domestic product, GDP) made news in March. Economic growth was weaker than expected at -0.5% for the December quarter 2008 (versus +0.1% for the September quarter). This took the annual pace of growth to just 0.3%, the lowest rate since the end of 1991 (the last recession). Mar 2009 |
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Smaller players to take bigger role in MIS
sector "Smaller-scale agribusiness players are set to take the limelight from their more established peers in 2009, thanks to a forecast decline in demand for traditional pulpwood products and the exit of major players from the managed investment scheme sector." thewest.com.au/business 03 Mar 2009 |
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Timbercorp will stand out of the MIS market
in 2009 Turning to MIS, shareholders will be aware that in February 2007 the Australian Taxation Office revised its interpretation of the laws relating to non-forestry managed investment schemes. The MIS companies challenged the decision through a test case that was heard by the full bench of the Federal Court of Australia. On December 19 the Court handed down a unanimous decision in favour of industry. The ATO has chosen not to appeal against the decision and they now accept the deductibility of project costs for non forestry managed investment schemes. Timbercorp welcomes this announcement as it is consistent with their long held position and the generally held interpretation of the law that has applied for decades. Despite this decision, Timbercorp will stand out of the MIS market in 2009 as previously announced. Timbercorp will consider MIS in future years as part of the strategic review process. 27 Feb 2009 |
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Macquarie Funds Group - Economic Commentary
Jan 2009 We are pleased to present the latest monthly economic commentary prepared by Lewis South, Chief Economist for Macquarie Funds Group.
Dec
08
Nov
08 |
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30 Second Read from Timbercorp Fire and extreme heat in south east Australia PLUS Water Update. Timbercorp’s horticultural and forestry projects have not been affected by the devastating bushfires that have devastated human lives and property last weekend. Horticultural properties have experienced unprecedented hot conditions over a sustained period of time. Managers have used irrigation to minimise heat stress in plants and crops. At this stage, no damage has been detected, however, we will continue to monitor for adverse affects from the heat. 17 Feb 2009 |
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FEA Provides a Hand for Fire Relief Forest Enterprises Australia Limited (FEA) would like to extend their deepest sympathy to the many people affected by the devastating and tragic Victorian bushfires.... Feb 2009 |
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The full Federal Court of Australia rules that contributions to
non-forestry MIS can be treated as tax
deductible. With the Federal Court recently ruling on the test case, uncertainty surrounding the tax treatment of horticultural or non-forestry registered managed investment schemes (MIS) has been resolved. This is a welcome outcome for both the industry and investors alike. The ATO has subsequently confirmed this decision stating in a media release that investments in MIS arrangements which are broadly similar to the test case are deductible. The ATO is now working to finalise product rulings for 2009 projects. Dec 2008 |
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How a
Scottish stand-up helps Aussies sit up and
take notice The use of famous Scottish comic, Billy Connolly, as the talking head of ING’s TV commercials was so successful in achieving that aim; he continues to be the face of ING Australia five years later promoting ING’s products, services and capabilities in investments, insurance and superannuation. |
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Important Notice From 12 December 2007, the ‘Know Your Client’ (KYC) requirements of the Anti-Money Laundering and Counter Terrorism Financing Act ( The purpose of the At this stage there is no consistent policy in place for the fund management industry. Some fund managers may not accept any new business without the investor's identity being verified, whilst others are using a transition period to implement the new regulations. As a result additional identification documents may need to be provided with investment applications. Investors should check the instructions for completing application forms and any identity document requirements provided in the product disclosure statement. The complete AML/CTF form for individuals can be downloaded by here. Dec 2007 |
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ASIC takes action and warns against non-compliant offshore investments ASIC has issued a warning to Australian investors about investing in offshore financial products that do not comply with local requirements. The warning follows recent advertisements by a New Zealand company, Asset Finance Ltd, in the Australian press offering investment opportunities with returns in the range of 9.75 to 12 per cent per annum for debenture stocks.... Oct 2007 |
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The biggest reform to Australian superannuation ever. Starts 01 July, 2007 The Australian Government has introduced the biggest reform to superannuation ever. From 1 July 2007, the Better Super changes will give Australians the opportunity to improve their lifestyle in retirement. The reforms will ensure..... Aug 2007 |
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Property Update - How to profit from a
property upturn, without owning a property If you want to take advantage of a possible recovery in the NSW housing market, yet the thought of taking out a crippling housing investment loan has been stopping you, there just might be another way forward worth considering. ASX listed property developers are increasingly becoming a rare breed with many transforming their businesses into property trusts and fund managers. Very few remain that focus exclusively on property development. Aug 2007 |
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Market Overview - The Australian Abalone Industry Australian abalone fisheries are managed by quota systems, and have been described as one of the last sustainable wild abalone fisheries in the world. The development of abalone aquaculture in Australia has trended towards the development of land based systems to allow total control over growing systems compared to conventional sea based systems that are more potentially subject to climatic extremes. Nov 2006 |
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Market Overview - The Australian Almond Industry Australia is very well suited to the production of almonds with Australian almonds regarded highly overseas. This is due primarily to the large size, flavour, light colour and consistent quality of nut produced. Feb 2007 |
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Market Overview - The Australian Avocado Industry In Australia, there are more than 70 avocado varieties of which Hass, Reed, Sharwill, Fuerte, Shepard and Wurtz dominate. The majority of avocados produced in Australia are sold as a fresh whole fruit, with the balance used as pulped avocado and avocado oil. Nov 2006 |
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Market Overview - The Australian Beef Cattle Industry Beef and Veal continued to be Australia’s most important agricultural commodity with a gross value of production of more than $7.4 billion in 2005/06. Around 2/3 of the beef produced in Australia is sold on international markets. Jan 2007 |
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Market Overview - The Australian Chicken Meat Industry Unlike most other rural industries in Australia, the chicken meat industry is dominated by a handful of large, vertically integrated companies which own almost all aspects of production including breeding farms, hatcheries, feed mills and processing plants. Three of these companies – Inghams Enterprise, Bartter Enterprises and Baiada – operate in at least three states each and supply about 80% of Australia’s broiler chickens. Nov 2006 |
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Market Overview - The Australian
Citrus Fruit Industry The introduction of citrus plants into Australia with the First Fleet in 1788 formed the foundation of today’s national citrus industry. Australia’s diverse climate is ideal for the production of a large range of quality citrus varieties including oranges, mandarins, lemons, limes and grapefruit. Citrus is Australia’s second largest horticultural industry, covering approximately 30,000 ha across Australia. Citrus is Australia’s largest fresh fruit exporting industry. Jan 2007 |
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Market Overview - The Australian Dairy Industry The Australian dairy industry is one of the most competitive and efficient dairy industries in the world. In 2005/06 there were 8,844 dairy farms producing about 10 billion litres of milk each year from a herd of just less than 2 million milking cows. May 2007 |
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Market Overview - The Australian
Lamb Industry Lamb meat production is often taken in conjunction with wool production and is consequently influenced by factors affecting the wool industry. Historically wool production has been the driver behind the Australian sheep industry; however meat production is becoming an increasingly significant driver of developments within the industry. Jan 2007 |
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Market Overview - The Australian Mango Industry The mango originated in North Eastern India and Burma, where it was one of the first fruits to be cultivated by man. Today, mangoes (Mangifera indica) are the second largest tropical fruit crop in the world, second only to bananas by total volume grown. The fruit also has cultural and religious significance in several countries, including India where designs of the fruit are found in Buddhist and Hindu temples. Dec 2006 |
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Market Overview - The Australian
Olive Industry There is masses of evidence to suggest that the olive has many associated health benefits, as well as a being a source of mono-saturated fat. Olives are also a source of antioxidants helping to protect against damage from free radicals and the formation of cancers. They are also said to help lower blood pressure, preventing or delaying the onset of diabetes and bolster the immune system. Consuming olive oil has also been linked to averting osteoporosis and memory loss and has also been found to prevent the skin from ageing. Nov 2006 |
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Market Overview - The Australian Sandalwood Industry Sandalwood timber is a generic term for the Santalum genus, of which 29 tropical and sub-tropical species are known across the world. Six species of Sandalwood grow naturally throughout Australia and of these only Western Australian Sandalwood (Santalum spicatum), that is native to Western Australia and to a minor degree it’s closely related North Queensland species Bush Plum (S. lanceolatum) are grown for commercial use. Nov 2006 |
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Market Overview - The Australian
Softwood Plantation Industry With few types of softwood native to Australia, the majority of Australia’s softwoods are imported tree species grown in plantations across all states. Softwoods generally come from coniferous and needle-leaved trees, with the term ‘softwood’ referring to the botanical classification, not the actual hardness of the wood. May 2007 |
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Market Overview - The Australian Strawberry Industry The Australian strawberry industry has grown steadily over the previous five years and according to the Victorian Strawberry Industry the outlook remains optimistic. Currently there are 40,000 tonnes produced annually, with a total value of $200 million. Oct 2006 |
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Market Overview - The Australian
Teak Industry Teak (Tectona grandis) has been used for around 2000 years throughout the world due to its attractive, strong, durable, minimal shrinkage, easily workable and relatively light weight properties. Teak is a sought after tropical hardwood used for shipbuilding, furniture, flooring, panelling and fixtures and is commonly considered to be the world’s most versatile, durable and valuable hardwood. Jan 2007 |
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Market Overview - The Australian
Truffle Industry French black truffles are considered one the great foods of the world. The French black truffle is a fruiting body of the fungus Tuber melanosporum. This fungus forms a symbiotic relationship with the roots of oak and hazel trees. Truffles are found just below the soil surface to a depth of 20cm and vary in size from 2cm in diameter to the size of a grapefruit. Specially trained dogs (and pigs) are used to search for the truffles. The edible portion, or truffle, is harvested in winter once it has matured. Oct 2006 |
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Market Overview - The Australian Walnut Industry Ideally suited to a Mediterranean-type climate, walnuts will grow in many parts of southern Australia. In addition to this, Australia has the advantage of fewer walnut pests and diseases and cleaner air and water than other producing countries. Walnuts require a cold period of between 600 and 800 hours below 10°C during winter and a frost free period during flowering. Mar 2007 |
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Market Overview - The Australian Wine and Wine Grape Industry Australia has been described as the perfect wine producing country. The first grapevines arrived in Australia with European settlement in 1788, with the establishment of the first commercial vineyard not long after. As settlement spread throughout the country during the 19th century so to did plantings of grapevines. Jan 2007 |
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Extension welcomed
for agribusiness managed investment schemes The Australian Tax Office (ATO) has announced it will defer the implementation of its reconsidered view of the tax treatment relating to agricultural managed investment schemes until 1 July 2008. Importantly,
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Budget tax changes: A strategic timing opportunity for agribusiness! The May budget this year has created strategic timing opportunities for Australian investors to make the most of significant tax changes that will be introduced on 01 July 2006. The most profound effect will be for tax payers in the $95,000 or more categories who currently pay some 47% tax (plus Medicare) on every dollar over the threshold. From 01 July an income earner will have to earn an additional 58% MORE income to be included in the top tax bracket, which in itself has been reduced to 45% and starts at the massive $150,001. The Australian Financial Review reported that just ‘the Top 2% of wage earners, those who earn over $150,000 a year, will pay the new top marginal rate of 45c in every dollar'. The implication for potential agribusiness growers is to optimise their investment positions prior to 30 June to make good use of the available tax deductions afforded to Growers in the various projects prior to 30 June as when the income is received in future years the Grower most likely will be in a lower tax bracket, simply due to legislative change! May 2006 |
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Federal Budget 2006 Proposed Taxation Arrangements For Plantation Forestry In the 2005-06 Budget, the Government announced that it would be extending the operation of the 12 month prepayment rule for forestry MIS until 30 June 2008 and that it would undertake a review of the taxation treatment of plantation forestry... 09/05/2006 www.peterdutton.com.au |
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100percentinvesting advertises in the Financial Review þ Invest in Tax Effective Agribusiness projects þ DIY online and Save Thousands in Adviser Commissions þ Projects available from $3,000 þ Up to 100% Tax Deductions fully supported by Tax Office rulings 17/05/2006 Australian Financial Review |
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Manager Ratings AAG’s recently released Manager Ratings have created some positive media attention recently... 01/05/2006 media release |
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Agribusiness investors urged to check commissions Australian 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... 19/04/2006 source: Money Management |
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Market Overview - The Australian Almond Industry Almond yields per hectare in Australia are substantially higher than the world average and despite the dry conditions experienced in Australia recently, there has been no noticeable decline in yields. Australia produces 10,000 tonnes of almonds annually, which comprises approximately 1.0% of global production, which in 2004 consisted of 1.55 million tonnes shelled. Because of this, Australia plays a small role in the world almond market. Jan 2006 |