Adviser Edge, BDO Kendalls Wealth Management and BDM Direct have jointly launched an online agribusiness portfolio construction tool to help financial planners and accountants reduce risk following the collapse of agribusiness company Timbercorp.
The tool, dubbed AgriBlend, is based on the premise that agribusiness investment should shield investors from the potential of a crisis event such as drought, manager insolvency, market failure or a weather event.
"We have developed a tool that will assist advisers to develop agribusiness portfolios that balance investment risk with the risk profile of the investor," BDO Kendalls Wealth Management director Michael Bugelly said.
"It is essential for advisers to remain strongly focused on building long-term sustainable and diversified agribusiness cash flows for their clients."
Adviser Edge managing director Shane Kelly said financial planners can reduce the volatility of a client's agribusiness portfolio by diversifying.
Planners will also be able to use AgriBlend to build integrated cash flows and debt repayment schedules, and generate statements of advice and reports.
"Advisers can no longer afford to ignore the need to diversify investor exposure when it comes to agribusiness," Kelly said.
"We have been very concerned about investment concentration in the managed investment scheme retail market. We believe a fresh approach is now required."
