Australia's first macadamia nut managed investment scheme (MIS) is targeting small to medium sized financial planning practices as it seeks to capitalise on lucrative tax relief and overseas demand.
Six financial planners have already been taken on a tour of Maccacorp's Queensland-based farm, and Maccacorp managing director Don Ross expects more planners to follow.
"These schemes suit small to medium-sized planners - it seems more attractive to them," Ross said.
"The larger ones aren't interested."
Maccacorp, which was established two years ago, launched its 2007 Macgrove Project yesterday. The licensed scheme involves retail investors becoming macadamia growers by sub-leasing one acre allotments in commercial macadamia nut orchards for an expected 21-year term.
The minimum investment is $11,000.
The scheme will not be affected by the government's proposed axing of MIS tax relief for non-forestry agribusiness investments because the draft tax ruling would apply after June 30. The government is considering a one-year transition period.
Ninety per cent of Maccacorp's nuts are exported to Asia, Europe and the United States. Australia is the world's largest producer of macadamias.
Agribusiness research house Adviser Edge has given the scheme a four-star rating and advised would-be investors to have a moderate risk tolerance.
It calculated potential returns ranges of 2.99 per cent to 13.46 per cent pre-tax.
