Investing in Forestry Fund to Diversify

quickinvestor

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They seem to do ok in the end. I know they get a lot of heat around here.

Forestry Asset Management company IFS has delivered an 83% return to investors after the first of its 10-year funds matured.


You just have to put money into them you won't need to 30 years. I think it's a good return if you want to make a long-term investment, in an asset back company.


I was looking at this one: Any thoughts?

  • 8% plus return compounded per annum on the capital invested over the lifetime of the investment.
  • 5.1% Gross annual income.
  • Tax exempt income as Government backed forestry grants are tax exempt.
  • World beating growth rates as Ireland’s optimum growing conditions provide some of the best growth rates in the world which are the main driver of forestry returns.
  • Biological growth is always positive thus preserving value during times of financial market turmoil.
  • Performance independent of financial markets biological growth of forestry is independent of all economic factors that affect financial markets.
  • Proven management team have track record of successfully procuring, establishing and managing forestry plantations.
  • Substantial investment opportunity due to the lack of new forestry plantations to meet future demand a compelling investment opportunity.
  • Investment risk factors are mitigated with careful site selection and ongoing management mitigate the productivity risk.
  • Rigorous forestry regulation ensures Ireland is one of the lowest risk locations in the world to invest in commercial forestry.
  • Diversified Portfolio of plantations ensures investor’s funds are spread over multiple plantations at any one time reducing risk exposure.
  • Hedges against inflation risk as historically forestry was an effective hedge against inflation.
  • Imminent Market Supply shortage from credible research institutes show critical supply shortage.
 
You can't access your money for 30 years?!!!! (I know pensions are long term too but at least you can access if ill health early retirement).

Is the 8% per annum return guaranteed or is it just a marketing projection (which really means nothing). If it is guaranteed, who is underwriting it?


Steven
www.bluewaterfp.ie
 
You can't access your money for 30 years?!!!! (I know pensions are long term too but at least you can access if ill health early retirement).

Is the 8% per annum return guaranteed or is it just a marketing projection (which really means nothing). If it is guaranteed, who is underwriting it?

The quoted returns on the typical schemes of this nature are never guaranteed and are therefore just marketing projections. Most such schemes offer only preference shares which means that the investor has absolutely no level of control over the investment, so talk of asset-backing and suchlike is usually just guff.
 
I have to say that I was interested in these funds way back, but when I looked a bit more closely at how they functioned, I said, No Thanks
 
They seem to do ok in the end. I know they get a lot of heat around here.

Forestry Asset Management company IFS has delivered an 83% return to investors after the first of its 10-year funds matured.


You just have to put money into them you won't need to 30 years. I think it's a good return if you want to make a long-term investment, in an asset back company.


I was looking at this one: Any thoughts?

  • World beating growth rates as Ireland’s optimum growing conditions provide some of the best growth rates in the world which are the main driver of forestry returns.
  • Biological growth is always positive thus preserving value during times of financial market turmoil.
Trees grow fast in Ireland but the quality of the timber is awful. Imported softwood tends to be a far better product.
 
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