Total MIS flows set to slow
Shane Kelly
Total flows into agribusiness managed investment schemes (MIS) for this year appear set to be well down on last year, according to researcher Adviser Edge.
Managing director Shane Kelly estimated total flows of “somewhere between $900 million and $1 billion this year, compared to $1.25 billion last year”.
“I think that if the industry raises more than $1 billion this year, it should be pretty well pleased with itself.”
Kelly told Money Management that discussions with the timber and horticulture project managers in the MIS sector suggest retail flows are “certainly below expectations”.
“It appears that with the equity and property markets relatively depressed, people aren’t closing out their capital gains as we head towards the end of the financial year.
“What generally happens is people realise capital gains during the year in these sectors, primarily, and choose to offset those gains by investing in agribusiness MIS.
“Unfortunately, however, this is just not happening at the pace you would have expected at the start of the financial year, prior to the start of the bear market.
“As a consequence of that slowdown, we are bringing back our expectations of final flows into the agribusiness MIS sector for this year,” he said.
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