Why invest in the Australian industry?

Stats and some copy taken from 2020 Aushorse Investor Guide

With such a strong, rewarding and exciting industry, there is no better place to participate in thoroughbred racing and breeding than Australia. 

The industry is buoyed not only by continual prizemoney and ownership involvement growth, but breeders providing buyers the ability to access the country’s best bloodlines through the public sale of yearlings. And whilst impacted by the challenges of 2020, these strong foundations have allowed racing and breeding to continue,and in some cases thrive, throughout it all. 

As your bloodstock agent can attest, the Australian bloodstock industry is a well governed and transparent one, offering a diverse range of thoroughbred investment opportunities to best suit your preferred outcomes and ROI timeframes. 

Pinhooking is one such opportunity that has become quite popular in recent years. Buyers purchase a weanling or yearling with the intention of overseeing its breaking in and racing education before preparing for resale at a later date to generate a profit on a quick turn around. Whilst this may provide good results, the unfavourable factors of injury, the horse not developing properly, or a dip in interest in the pedigree do pose a risk. 

Generally, the strength of Australian commercial stud farms lies in the ability to breed a successful sprinter/miler type, which in turn has the ability to go on to successful commercial stud careers. This can be seen in the Australian Leading Sires Rank, which is dominated by Australian bred horses. In 2020 alone, at least three Group One-winning colts were traded in stallion deals worth above $20 million, with three more in eight figures, even before they have finished their racing careers. 

Fillies and mares are also well sought after for the breeding barn when they have concluded their racing careers. A $300,000 yearling in 2017, the Tony McEvoy-trained Sunlight broke records when she sold to Coolmore Stud for $4.2million at the 2020 Magic Millions National Broodmare Sale.  

Whilst not every bloodstock investment will make you a millionaire, the depth of racing across Australia provides many opportunities for alternate strategies for horses if required. Each state offers bonus schemes for locally-bred racehorses, as well as specific race series and programs for provincial and country trained horses to best match their ability. 

The Australian racing industry also has strong ties with Asian racing jurisdictions, providing the ability for international trade. Australian bred horses can command over A$200,000 in Asia, and in 2019 alone, Hong Kong imported 239 horses whilst 161 were sent to Singapore. Whether you’re a sole owner or part of a large syndicate, Australia’s passionate embrace of racing and love of a flutter, ensures the riches of racing are available to owners and participants at all levels. Discuss your preferred investment options with your FBBA-accredited bloodstock agent today! 

For more info check out the latest Aushorse Brochure https://www.aushorse.com.au/2021-investors-guide/#js-scroll