Thursday 22 November 2012

Teak Investing - Key Facts and Opportunities



Look in the Right Places and Money Does Grow on Trees

Although few investors realise it, timber has outperformed the stock market significantly over time the last 30 years. Of course, there’s a simple fundamental driving this out-performance for timber – biology. No matter what’s going on in the world or the markets, trees keep growing. This annual growth provides a natural hedge against inflation. The conclusion for many is that timber investments provide a great tool to diversify portfolios and immediately owning trees becomes a very interesting proposition.

Teak is one of the most durable, robust and sought after tropical hardwoods. The global shortage continues to drive the supply/demand deficit and has lead to what is widely regarded as one of the few consistently high yielding low risk commercial opportunities. [The product provider] have pioneered a structure that not only offers a safe and secure purchase structure, but also further reduces what is already considered to be a low risk investment.

  • Purchase trees from existing company stock

  • 5 – 15 yr investment term

  • SIPP Compliant – Relationships with SIPP providers where necessary

  • 8-12% IRR

  • Harvest Flexibility 2018 onwards

  • Packages available from £20,000

  • Increase personal stock in the future – Additional trees can be purchased at any time

  • Asset based investment

  • Ethical, sustainable & green

  • Purchase directly from Plantation Owners

  • Highest level of customer security through exceptional corporate governance

  • Secure Ownership Structure – Protected by a UK trustee

  • Unique purchase order structure further de-risks the purchase (customers only receive mature elite trees of a predefined size)

  • Size Warranty on delivery – predictable returns from a known quantity of timber

  • Customer orders underwritten by company buffer stock

  • Widening supply demand deficit supports rising global prices

  • Perfect inflation buffer (inflation of 3%, tree grows in size/value 10%)

* Ideal balancing tool to diversity portfolio

Warren Buffet: Only buy something you would be happy to hold if the market shut down for 10 years.

For further information please view the full product brochure within our Members area or contact us info@silvinvest.co.uk. Alternatively, you can request a product enquiry appointment using the widget located top right

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