Positive start to 7th Forestry Growth Plan as investment ahead of target

THE seventh Forestry Growth Plan, launched on the Irish market under two weeks ago, has had an positive response from potential shareholders.

The fund has already achieved a confirmed investment of 25% with enquiries from potential investors surpassing 2008 levels, according to the promoters. The minimum investment in the 7th FGP is €750, but the average investment in the fund to date is €4,500.

Strategic Marketing director Paul Brosnan, said: “There is a dramatic change in interest in this particular fund in comparison to funds that were launched in both 2007 and 2008. Enquirers are more concerned about the consistency in the rate of return and are more aware of the tax-free benefits of forestry investment in addition to the asset backed nature of the product.”

The fund projects a compound tax-free rate of return of 7.5% over the investment term of 12 years.

Mr Brosnan said that with a consistent average return of approximately 9% per annum over the past 12 years, Irish Forestry Fund shareholders benefit from that part of their investment portfolio which has avoided the significant demise of the equity markets and in particular the banking stocks over the past year.

“Furthermore, forest owners are likely to benefit from carbon sequestration as the new economic order pursues a greener environment and the replacement of fossil fuel for energy purposes with wood chip and wood pellet produced from domestic forest sources,” he added.

The Irish Forestry Funds account for more than€90 million of Irish forest assets on behalf of 17,000 Irish forestry investors and this figure is set to continue.