Fall in agribusiness MIS capital raised

Capital raised by agribusiness project managers in managed investment schemes (MISs) fell by 5 per cent last year, from $1,139 million to $1,079 million, according to Australian Agribusiness Group(AAG).

Its seventh annual ‘Report on Capital Raised in the Agribusiness Managed Investment Scheme’ found timber projects raised $705 million, 5 per cent more than last year , and representing 65 per cent of total funds.

Horticultural funds grew by 4 per cent to $246 million last year, although wine grapes decreased by 46 per cent to $42 million.

AAG Research director Tim Lee said the report reveals the agri MIS industry has “stood up pretty well, considering the global turmoil affecting investments and the lack of certainty surrounding tax rulings”.

“A decrease in funds of only 5 per cent is a very good result and MIS is proving to be pretty robust when compared to general equities markets, which have taken a real hammering.”

“Factors like interest rates which impact on gearing levels, a lack of water and the way the test case for non-timber MIS has dragged on certainly wouldn’t make the job of raising capital any easier, so I reckon it’s an outstanding result,” he said

Another key report finding was that only 25 per cent of projects achieved funds raised equal to or in excess of their stated target figure for the year.

It also found there were 24,500 individual investors who participated in MIS projects in 2007-08, 5 per cent less than the year before.