Investment View (overall) - TIM is a well-run agribusiness investment manager, which has benefited from a well-executed diversification strategy. Moving away from its original forestry schemes, TIM has managed to create a strong position for itself in the very profitable horticultural MIS sector. Our concern with the future for this strategy is the possibility of taxation ruling changes, which may serve to make MIS investment less attractive.
Investment View (over the next 12 months) - We believe that in the immediate future, higher inflows into TIM’s schemes should continue, fuelled by people seeking a tax effective investment option, as high wage growth pushes more employees into the higher tax brackets. We believe however, that with the current government review of the MIS taxation rules still unresolved, it is prudent to wait until there is some clarity on the issue before making an investment.
TIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
