Nine and MacBank in new fund

Nine, owned by Publishing & Broadcasting Ltd, and Macquarie and Hoyts Distribution hope to raise at least $20 million to invest in films made by the likes of director Fred Schepisi and involving stars such as Irish comedian Jimeoin , as well as the television series McLeod's Daughters .

The first fund, launched last year, raised $23.5 million.

The new fund will have an income distribution of at least 55c in the dollar over the next five years and there is a 100 per cent tax deduction on an investor's subscription.

The minimum investment is $5275, including a 5.5 per cent application fee.

The funds will be used to produce, finance, distribute and market commercial films and TV productions, with a 40/60 split, respectively.

According to those behind the fund, Australians spent a record $844 million on 92.5 million cinema tickets last year.

Macquarie Bank had an earlier investment in the industry, launching Macquarie Film Corporation in 1998. MFC raised about $16 million which was invested in, among other things, the movie comedy Crackerjack , which was the highest grossing Australian film at the Australian box office last year.

Executive director for investment banking at Macquarie, Charles Wheeler, said the risk of investing in the film industry was offset by the guaranteed minimum return of 55c in the dollar, the investment's tax deductibility, and by the fact that the fund invested in a portfolio of projects.