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  • Now is the Time to Launch a Forestry Fund

    2010 - 07.27

    October heralds the launch of a regulated forestry OEIC to retail investors from Green Oil Plantations. They have already confirmed that they are in talks with two asset management companies to launch the forestry fund, with aims to harness the opportunities coming out of Australia’s drive for 20% renewable energy by 2020.

    Returns will be generated from a variety of methods, such as: carbon credit sales in the open market and the sale of biofuel from tree’s seeds.

    Patricia Ellis, director of Green Oil Plantations, said the decision to launch an OEIC has followed the success of their unregulated funds, of which they have two.

    She explained, “It is most likely to be an income fund and we are likely to have more information towards the end of July – we appreciate the appeal of a regulated market but we are not only going to sell regulated products.”

    Since the start of the year Hornbuckle Mitchell, Lifetime Sipp, Brooklands Trustees and Pointon York have given their approval to Green Oil to allow its unregulated funds into their SIPPs (self-invested personal pension).

    Green Oil aren´t the only ones to launch a fund in the forestry sector, in this past year Stellar Asset Management launched a second forestry fund. With the rise in capital gains tax now is the time to launch a forestry fund according to Jonathan Gain.

    He explained, ‘The attraction isn’t simply tax relief and the feel good factor, although the 100 per cent inheritance tax, income tax and CGT relief does make forestry an attractive investment for many.”

    ‘The outlook for forestry is also immensely appealing at this time. There is considerable demand for uses such as construction, packaging and home improvement and the forests can also provide additional income from communication masts and allowing the constructions of wind farms on the land.”

    ‘Timber is also harvested and distributed to renewable energy power plants, which is a market with substantial capacity for growth.”

    The Timber Investment Blog is sponsored by Greenwood Management. For more information on investing in Forestry please click here

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