Of the 61 forestry investments managed by Forest Enterprises, 49 are Managed Investment Schemes (MIS), registered under the Financial Markets Conduct Act 2013 (FMC Act) and regulated by the Financial Markets Authority. Forest Enterprises Limited is licensed under the FMC Act to manage Managed Investment Schemes (excluding managed funds) which are primarily invested in forestry assets.
Generally in a MIS –
- a group of people are brought together to contribute money in return for shares in the scheme
- money is pooled together and used in a common enterprise
- financial benefits are produced principally by the efforts of another person under the scheme
- a ‘responsible entity’ (a licensed Manager) operates the scheme meaning that investors do not have day-to-day control over the scheme’s operation
Property investment such as forestry (land and trees) is a common type of MIS. Typically, an MIS manager will exercise skill, and provide expertise and decision-making in managing the forest and administering the investment. The Supervisor acts on behalf of the Investors to supervise the performance of the Manager and ensure it complies with its obligations under the FMC Act and the Governing Documents.