MIS uncertainty hurts Great Southern
Cameron Rhodes
Agribusiness funds manager Great Southern has reported a 24 per cent decline in total sales of its managed investment scheme (MIS) projects over the past financial year, translating to a 6 per cent decline on a like-for-like basis.
Commenting on the results, Great Southern chief executive Cameron Rhodes said the disappointing result was driven by a number of adverse factors, particularly general market conditions and investor confidence, uncertainty regarding MIS projects generally and delays in finalising the company’s pulpwood plantation project.
However, he said that based on industry estimates of total agribusiness MIS sales this year of around $900 million, Great Southern had maintained its position as market leader and expected its market share to be relatively consistent with prior years at greater than 30 per cent.
Rhodes said that the company had begun a comprehensive strategic review process to adjust and simplify its current business model to provide more predictable and sustainable profit and cash flow, reduce its exposure to regulatory risk, overhaul its cost structures, lower ongoing demands for new capital and generate enhanced value from its significant agricultural land bank.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
