WHAT ARE MY RISKS ?  The Resort Agency and their partners have gone to considerable lengths in order to eliminate as much risk as possible from its Agricultural Investment Products. Some risks however, cannot be totally removed.

WHAT ABOUT EXCHANGE RATE FLUCTUATIONS ? The underlying investment asset is valued in Australian dollars. Thus for people investing in another currency, such as Euros or UK pounds, there is risk associated with fluctuations in the exchange rate from the time of making the investment and the time of receiving the returns. If the Australian dollar falls, the Investor loses; and if it rises, the Investor gains. However note that this exchange rate risk only applies to 20% of the investment capital of Clients investing in the Secure Income Plan.

HOW SAFE IS AGRICULTURAL LAND ? The price of farmland generally reflects its financial yields, which in turn is the multiple of the crop yield per hectare and the price of the crop. Crop prices are subject to short-run fluctuations and long-run trends; and it is the long-run trends that affect farmland prices. Although the past year has seen huge fluctuations in crop prices, partly caused by speculation, there is general consensus that the long-run trends are upwards, because the global population is rising whilst the stock of farmland is largely fixed.

WHAT ABOUT THE POLITICAL RISK ? In some countries agriculture is potentially at risk politically, through changes in economic policy such as special levies or export tariffs –even forced changes in ownership etc. In Australia however, the legal & political landscape is very similar to that of the UK, so that such risks would appear unlikely.

IS THIS A COLLECTIVE INVESTMENT SCHEME ? This investment is not a Collective Investment Scheme under s235 of the Financial Services and Markets Act 2000. This is because the Investor owns a particular piece of land, has entered a separate contract for its management, and has determined through the contract the date of sale; so there is no collective management. Hence the investment is not subject to regulation under or authorization by the Financial Services Authority.

HOW SECURE IS MY MONEY ? In order to give our Clients complete peace of mind and total confidence when investing, the services of Hilliers HRW Solicitors LLP will be engaged for settlements.. Under the terms of the Land Purchase Agreement, all monies will be sent directly by the Client to Hilliers HRW in escrow. The Hilliers HRW’s escrow letter then forms part of the Land Purchase Agreement and ensures the Client gains beneficial ownership of the relevant land. And client funds will remain in escrow with the solicitors until such time as the terms of the Land Purchase Agreement have been met.