Arafura Pearls has established a Managed Investment Scheme (Arafura Pearl Project, or MIS) around its existing pearling operations giving investors a tax-effective opportunity to become Australian South Sea pearl farmers (Growers) in their own right.


Key Features

100% tax deductible investment with 70% deductible in year of investment and the remaining 30% deductible in equal portions over the first two years of the project;

Participation in a mature and successful Australian industry with high barriers to entry and production limitations through a quota system;

Arafura Pearls will select and grow hatchery produced shell for each Grower based on his or her subscription, providing them with a certain minimum number of shell over the first 18 months of the project;

Grower shell is then seeded approximately 2 years after commencement, harvested 4 years after commencement, reseeded where appropriate and harvested again approximately 6 years after commencement;

The project term is approx 6.5 years reflecting a typical hatchery based pearl production cycle;

Net pooled pearl harvest proceeds expected to be distributed to Growers in years 5 & 7 of the Project;

Arafura Pearls' ongoing management costs are deferred against expected harvest proceeds for Grower convenience and to further align management interests with grower interests;

The Arafura Pearl Project's commercial appeal is supported by strong independent research.
 

The Investment

The minimum initial establishment fee is $13,400 (inc.GST) for 2 Project Interests.

 

 

Features

Up to 6% cash rebate (see below)

$6,200 per Project Interest (minimum 2)

7 year project term (income in years 5 & 7)

100% tax deduction for investment amount (70% in the first year)

 

Commissions & Cash Rebates

With tax effective investments we will receive a brokerage payment consisting of a 'commission' & 'marketing allowance' which is paid from the company that you invest with.  It is not deducted from your invested funds. With regards to Arafura Pearl Project 2008, Fundbroker will receive an 8% commission.  We will provide a cash commission rebate as a percentage of the funds you invest as shown in the table below:

 

 

The cash rebate is paid to you as soon as we receive our commission payment and is related to the number of units in the project (i.e. two interests will provide a 4% rebate, 8 units or more an 6% rebate)

 

 

Further Information

For further information please download any of the following files or right click on the button and 'save target as' to download to your computer (all files are in *pdf format):

 

 

 

 

 

IMPORTANT : This information has been prepared without taking into account your investment objectives, financial situation and particular needs. National Financial Solutions Pty Ltd (the authorising licensee) makes no recommendations as to the merits of any investment opportunity referred to on this site or via email correspondence. All indications of performance returns are historical and can not be relied upon as an indicator for future performance. Any investment decision in the products listed is entirely yours. NFS bears no responsibility for the appropriateness of the investment to your circumstances.  NFS will not be held responsible for the performance or security of any investment going forward. Furthermore NFS recommends that you seek advice from an independent person as to the appropriateness of any investment that is placed through our service.

With all of these types of investments you should seek independent taxation advice to determine whether this investment suits your circumstances. Please read the important information section.

By listing this investment on our site we are by no means endorsing this investment, manager or product.

* IRR upper range from independent research report