Key Post Investment in Irish Forestry Funds

jpd

Frequent Poster
Messages
1,727
I just got a e-mail inviting me to invest in a Swiss forestry investment with the promise "Growth guarantee - trees will always grow"

My mother taught me that money doesn't grow on trees and I know who I believe
 

extopia

Frequent Poster
Messages
3,109
IFS has published financial statements for the wound-up funds online. I would have thought this would be in the post along with the cheque but maybe it arrived earlier? Don't recall getting the usual hard copy in the post.

I'm looking at the accounts for 6th Forestry Investment Plan. Interesting that the amount usually included in the notes to financial statements for "forest growth" (almost €3 million in the 2013 annual report) seems to have disappeared, beyond the comment on p12 that "forest timber growth is not recognised in the financial statements". I wonder does this mean that the value IFS had attributed to such growth every year was highly dubious? I don't have 2014 statements to hand but in 2013 this "timber growth" contributed almost half of the value of estimated total shareholder assets of 6m+. On windup, total shareholder funds were only €3.6m. Some interesting related party transactions on p19 - it appears that "forestry management" (charged to the plan by IFS) got more expensive during the year, even as shareholders were waiting for their paltry returns. Perhaps there's a good reason for this, perhaps not.
 
Last edited:

stuffit_ire

Registered User
Messages
1
Invested €3000 in the Fifth Forestry Investment Plan in 2002

Projected Return according to the prospectus was 9.6%

After 10 years this would have amounted to €7,503
After 13 years this would have amounted to €9,877

Amount actually received €3,774.88
Or a 1.783 % return
 

extopia

Frequent Poster
Messages
3,109
I see from the 6th FIP statements that the assets were sold for 3.8 million.

Land costs (2.7 million) and afforestation costs (506k) on the books totalled 3.2m, so they realised a "profit" of around 600k.

You can do the maths yourself. Don't know how land prices have changed since the land was acquired in 2002 (?) but the results have been pretty miserly. Luckily for IFS they have first dibs on the proceeds and were able to charge the usual fees and admin costs to the plan.
 
Last edited:

daibhid

Registered User
Messages
1
I was absolutely mad when I received cheques for various F.I.P plans. I have come to the conclusion considering the high level of risk not to recommend forestry investments to anyone. This is not what I signed up for. The amount of times over the years these F.I.P were recommended in the media indicating above average returns would make you sick. All letters and information provided over the past 10 - 13 years indicated the market was difficult but at no point suggested returns would be so disastrous. Secondly who actually bought our Forestry investment. If I had left the money in the banks for the past 13 years my return would have been equal or greater. Some management of funds. I would say we got out by the skin of our teeth. I felt lucky to receive my original investment. What skill or qualification does it take to get 1.783 % return over the period. An intelligent monkey could do as well. We were sold a pig in a *** .
 

jpd

Frequent Poster
Messages
1,727
Interesting to go back and read the first page of this thread which has comments from 2002.

I had a look at buying into some of these funds in 2003/2004 but decided against it as I didn't really like the way the investment was structured - lucky me!

I think it shows up the old adage, only invest in things you understand.
 

horusd

Frequent Poster
Messages
1,581
Glad to have read this post. I had contacted the FIS to check-out a potential investment. Will now politely decline!
 

frankde

Frequent Poster
Messages
60
just got my cheque for the 10th, very dissappointing return after 11 years...
Wont invsting in this product again that is for sure
 

hello1072

Registered User
Messages
1
All quick query anyone had to get an out of date cheque reissued from above if so any issues.

Thanks
 

John Walsh

Registered User
Messages
25
Finally found a forum where one can get the real returns dismal which is what I suspected .
Any views on Christmas tree investment ?
 

10th Forrest

Registered User
Messages
34
Bump! Got an update on the Forestry Growth fund - a 12 year plan (must look up if was taken out 12 years ago!)
which is being prepped for sale - due diligence etc so no chance of anything quickly but if I have a return of some sort for Chrimbo I'll be happy. It'll just feel like found money at this stage.
 

john luc

Frequent Poster
Messages
407
have very little knowledge of this kind of investment but the lack of clarity and lack of real provable evidence would have me stir clear. Only facts that I do have is being observer to the sale of a forest that is not complete but very mature. Trying to get a value was hard but eventually a value of 80 to 90K was suggested. It actually sold for 50K which made the whole project very poor value in real terms.
 

10th Forrest

Registered User
Messages
34
Just got a letter about the Forestry Growth Plan Plc (summer 2006) , target for competition first quarter 2019. Nothing new otherwise.
 

cremeegg

Frequent Poster
Messages
3,082
have very little knowledge of this kind of investment but the lack of clarity and lack of real provable evidence would have me stir clear. Only facts that I do have is being observer to the sale of a forest that is not complete but very mature. Trying to get a value was hard but eventually a value of 80 to 90K was suggested. It actually sold for 50K which made the whole project very poor value in real terms.
Can you tells us how many acres, or what type of forest.
 
Top