Adviser interest in forestry investments is gaining headway amid an unstable investment environment, according to forestry company ITC.
"Our current sales figures show a 131 per cent increase over last year but because the majority of sales take place in June, we're not able to confirm whether the end result will increase or decrease come 30 June this year," ITC head of funds management Linda Pickering said.
While continued growth could not be substantiated, ITC said it was confident that increased support from advisers would translate into higher sales during 2009.
"More than 80 per cent of the major dealer groups and an increasing number of boutique Australian Financial Services Licensees are receiving educational services and sales support from ITC," Pickering said.
"We are also running 30 per cent more educational sessions on forestry and financial planning strategies in 2009 than we were last year."
According to ITC, forestry investments are gaining momentum because clients are more interested in alternative assets and because more advisers have revisited managed investment schemes (MIS) and accept that forestry can be run as a business with long-term horizons and major income being received in pension phase.
Agribusiness investment research house Adviser Edge managing director Shane Kelly said while Adviser Edge had noted a growing interest in the agribusiness sector over the last six months, it expected sales in the sector, including forestry, to be down quite significantly.
"In relation to ITC, there is still certainly capacity for it to increase sales and we are receiving feedback from our client base that ITC is getting good support in the market place," Kelly said.
In regards to the Timbercorp collapse and Great Southern going into a trading halt, it is hard to assess the impact these events will have on sales in the industry, he said.
