Letters - Counting the costs
I note Julie Bennett's article "Money growing on blue gums" (Money Manage-ment, 13 April) makes mention of Count's recommended list.
I note Julie Bennett's article "Money growing on blue gums" (Money Manage-ment, 13 April) makes mention of Count's recommended list.
Great Southern Plantations is not on Count's recommended list and whilst Timbercorp was for the last two years, it is no longer on the recommended list.
Count outsources its research to specialist researchers. I cannot comment on the findings of that research because we and other dealers in the industry have paid a large sum for this research. What I can say is that of the 70 plus tax effective investments reviewed, only five of them were recommended by van Eyk Research and only three of the five will be recommended by Count.
In fairness to Timbercorp, I understand that they may have only narrowly missed a recommendation. I believe this was largely to do with costs.
This brings me to the next point and that is costs. Cost is the only thing guar-anteed with investments and while our industry often pays little regard for costs it does so at its peril.
It is true that blue gums are good for the environment; they grow well in Aus-tralia; and there will be a demand for their final product; but what is unknown is the price of the final product. The initial costs will be all important in deter-mining whether or not it will be a worthwhile exercise for the investor and therefore cannot be ignored. Full marks to van Eyk for taking a stand on costs. The industry should be forever grateful if it means investors get a better outcome next time around.
From what I read and hear, some tax effective investment recommendations are based on the commission payable and not on research. Should this be so, those who do not have a basis for their recommendation and who are not planning to retire in the next 11 years, would be well advised to pay up their PI for the next 11 years, because it will probably be unaffordable by the time the trees mature!
Barry M. Lambert
Managing Director
Count Wealth Accountants
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