New service sorts wheat from the chaff
High profile investment researcher Stephen van Eyk has backed a new research outfit aimed at sifting the good from the bad in tax-effective agribusiness investments.
The new venture, Van Eyk Capital, is a 60 per cent-owned subsidiary of Van Eyk Research, while the remaining 40 per cent is owned by former merchant bank director and managing director, David Marshall.
Marshall says Van Eyk Capital has already received support from some of the biggest financial planning groups in the country, including AMP, National Mutual and Deutsche.
He says financial advisers often avoid agribusiness investments because there is a perception that the underlying investments are being sacrificed for the sake of the tax benefits.
"But while there may be the shoddy element, there are also a lot of very good operators with good investment potential," he says.
Van Eyk Capital researches primary industry investments, such as tea tree oil, aloe vera, blue-gum trees and vineyards, which seek to raise capital through a prospectus. The company will then award each project either a 'pass' or a 'fail'.
Financial planning subscribers can then recommend the project with knowledge of the risks involved.
Projects must pass through a rigorous three-stage filtering process before Van Eyk Capital gives them the green light. No project has been passed do far, although three have reached the final stages of research.
The research process involves an initial interview with the project manager, followed a detailed questionnaire and finally a thorough investigation by an independent expert in the area of agribusiness covered by the offer.
Marshall says the research will give financial planners greater peace of mind by helping to prevent some of the rip-offs of the past. It will also attract much-needed investments to the bush by providing more security to investors, he adds.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
