Macquarie protects investors from drought

In an industry first, Macquarie Alternative Assets Management (MAAM) has taken out drought insurance cover for the investors of one of its agribusiness schemes.

The insurance policy is designed to provide Macquarie Almond Investment 2007 investors with protection, and represents the first time a managed investment scheme has incorporated drought insurance in this way.

The policy provides cover in the event that total rainfall levels within certain Murray River catchment areas fall below a pre-agreed level, which in turn affects tree growth.

When claimed, the policy should cover the cost of replanting the trees as well as providing investors with a payment for the estimated loss of one year’s income.

MAAM director and head of retail agribusiness, investment banking group, Anthony Abraham said this completed the range of measures MAAM had gone to in order to manage the effects of drought and help reduce the downside risk of investing in agribusiness.

The other measures include innovative water preservation strategies and the ability to purchase water stores if needed.

“This completes the set and should give people extra comfort when investing,” Abraham said.

He added that the protection came at no extra costs to investors.

“Macquarie is bearing the cost — it’s part of how we operate in wanting to look after our investors,” Abraham said.