Forestry Investing for the High and Mighty!!

http://www.efinancialnews.com/story/2012-11-26/church-seeks-alternative-commissioner

The Church of England is no stranger to such alternative investment strategies, having begun making investments in them in the last few years. Last year, it bought 13,700 acres of Scottish forestry plantations.

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S ustainable I nvestments L asting V alue; we promote Forestry Investments, Green Oil and Farmland. Products for the Modern Day Investor.

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Quality Teak - Such an Attractive Investment

Quality Teak - Such an Attractive Investment

Across the world, one of the most highly regarded of all the tropical hardwoods is teak. Its prolific use within the furniture and construction industry is renowned. And it is the same attributes that create outstanding furniture and strong construction materials that make teak equally as attractive to the informed investor.

Predictable Growth

The investment itself is one that grows both visibly and financially. As a tree turns from a teak sapling into a fully grown specimen, the value of the investment also develops, showing that money really can grow on trees! Thanks to the reliability of the Teak species, it is possible to be confident in the return that such an investment will bring. The solid structure and natural resilience to pests, disease and adverse weather conditions creates a strong and solid material for production which cultivates a degree of certainty for investors that is not available in many other natural products.

High Demand

The hardwood taken from the Teak tree is highly grained and offers a beautiful colouring which makes the wood highly sought after in the furniture industry. As demand for such a raw material is on the rise, so the value of any investment in teak also increases. Used in a variety of ways, the versatility of the wood is such that even when market conditions impact on the overall timber asset class, teak prices remains buoyant.

Readily Available Markets

There are markets for selling both raw teak and the final products that are made from it. The products that are created are readily demanded and can frequently be founded in local marketplaces across the world, but especially in Asia where in many countries it is the wood of choice. In a similar way, the markets for teak investment are also readily accessible by large stockholders and individual investors alike. Any investment in Teak can be liquidated simply by felling the mature trees and selling them on to the local or global timber market, or by dealing in futures for immature trees via forward purchase contracts.

Limited Supply

Due to the long term growth required to produce high quality teak, the supply of the wood itself is relatively limited. Changes in volumes require patience and hard work and the current existing shortage is estimated to continue until at least 2030. This limited supply enables producers to claim a much higher price for Teak than other similar hardwoods and ensures that the value of the wood is consistently maintained. Such a resource limitation provides a much greater opportunity for the return on any investment made and more confidence in the ability of the initial capital to maintain its value against market fluctuations and rises in inflation.

Most major teak producing Countries have applied Laws to completely ban the logging of natural teak forests and to criminalize any groups involved in illegal logging. Supply and Demand economics should continue to maintain Teak as an expensive hardwood.

Over the past 30 years, teak has consistently outperformed stocks, bonds and a range of other commodities to provide an estimated 5%-15% annualized ROI to its investors creating a valuable and attractive asset for all those involved.

For further information please contact Silvinvest. The investments we have access to are in standing teak. This means that the trees you purchase are already semi-mature and this offer a certain amount of flexibility when considering an end date for your investment.You can book a telephone enquiry session or request a brochure using our appointment booking widget located top right.Cash Investments can be made directly or via a Self Invested Personal Pension (SIPP)if you are a UK citizen.

Timber Farming in Sri Lanka

In recent years the degradation of the Sri Lankan forests has been the country's most serious environmental issue. Due to the significant amount of land required for the production of tea in one of the major producers of the world, as well as the need for further land for agriculture and irrigation networks, deforestation has been such a key factor within Sri Lanka that it has been a major initiative within the region to halt the decline of the country's natural forests and build up a sustainable timber industry ripe for international investment.

Though historically the country could boast that nearly half of the entire island was covered by forest, between 1990 and 2000 alone Sri Lanka lost more than 1% of the land used for such purposes year on year. However, due to the tight policies and laws implemented by the Government and the contribution made by International Environmental Organisations, the rate of deforestation in the country is now declining by as much as 35% with managed sustainable forests becoming a key contributor to both the local economy and the hardwood timber industry as a whole.

Though large scale planting has only been established in the region since the early 1950's, radical changes in the processes used to grow and harvest timber within Sri Lanka have enabled the industry to benefit from environmental and economical efficiencies that have altered the face of the entire business and developed a sustainable solution that provides an attractive investment proposition that is both economically and environmentally sound.

With the majority of the forests owned and run by the National Forest Department and identified areas across the region now preserved for the production of timber, the perfect conditions in the region have enabled the production of large scale Teak plantations which is now by far the most common type of hardwood grown within this area.

As one of the most durable of the tropical hardwoods, more than 85% of teak produced across the world is used in the furniture industry however its high oil content provides a quality that makes teak equally as vital in ship and yacht building. And with such a shortfall in the supply of teak compared with the level of demand for this natural resource, the value of this timber continues to climb and provide healthy returns for those that invest.

Under the Forestry Sector Development Programme in 1990 the Sri Lankan Government introduced a blanket logging ban across all natural forests and has ensured that illegal logging is not the major issue within Sri Lanka that it has been in other timber producing companies.

And with stability now surrounding the democratically elected government, which is continuing to encourage international investment, particularly in environmentally friendly investments, and increases in population within Sri Lanka and across the globe translating into further demand for high quality teak, the hardwood grown within the region provides a range of reliable and qualified investment opportunities that are going to reap significant rewards for any long term investor.

www.silvinvest.co.uk

Investing in Two Successful Tropical Tree Species.

Two Successful Tropical Tree Species.

The forestry sector in Costa Rica has been influenced for many years by two commercially viable and vital tree species, Teak and Melina. Offered to both national and international investors, both species are highly sought after and have become a favourite as species of choice within sustainable tree farms.

Teak and Melina originated in Asia but over the last 30 years have been planted in many regions of Costa Rica. This is mainly due to the trees adaptability to the climate and environment. Therefore, as non-native trees, they are the two most widely established tropical tree species in the Costa Rican forestry sector.

Teak started to be planted in Costa Rica during the 1920′s. Teak was strongly marketed for being a sought after and important tropical hardwood. There is still a massive demand for tropical hardwood especially from India, where teak is known as the hardwood of choice.

Teak as a tropical hardwood, is one of the most used woods worldwide. Teak is in demand, in considerable amounts, by the the worlds markets with stable and generally increasing prices. This non-native tree has been intensively grown in forestry plantations due to its hardy nature and natural resistance to flood and pest.

Larger teak tree farms are generally in the hands of large international organisations while smaller plantations up to 40-60 hectares are controlled by national producers and professional project managers. The timber derived from tree plantations is mostly exported internationally, in form of raw-logs or as a plained and processed product. The main consumer countries are the population rich India, Indonesia and China.

Both countries are the two main importers of tropical wood while Europe and America are also big markets.

Importers of teak have strict rules in terms of certification (e.g. certified by the FSC)

Much later, Melina was starting to be introduced and planted with the aim to help pulp paper production. Afterwards, the importance of Melina has climbed considerably in the territory of Costa Rica. This is due to its short harvesting cycle which is unusually short for a hardwood. After 12 years a healthy Melina tree stands just short of 100 feet tall.

Melina is the most consumed type of tropical tree in Costa Rica.
Currently, both species benefit from sustainable demand.

Here at silvinvest we highlight several superb Forestry Investments. Register to gain access to the Sales Brochures and interact with our Potential Returns Calculator.www.silvinvest.co.uk/articles

Dear Prospective Investor

Dear Prospective Investor

Similar to many, you know that you need to be investing for your future and the future of your loved ones. With so many different investment options available all over the world, it can be hard to choose an investment product that is right for you.

Also, with all of the current upheaval in the markets and economies in various countries globally, picking an investment or market where you can feel assured of a future return can be a scary and difficult prospect. To compound the problem further, rates offered on savings accounts is less than inflation.

With all of these obstacles to safe investment, personal ideals such as environmental responsibility may have taken a “back-seat” when choosing between investment options, as most of the “big names” in Fund Management normally overlook the “eco-friendliness” of a particular market when creating their investment products.

It can be difficult to know if your investment with some of these big name investment firms is helping or hurting your investment plans.

However there are options to picking a sound investment that you can rest assured is also beneficial to the environment;

It’s easy to learn.

An asset class that is the third largest traded commodity world-wide.

An asset class that has actually risen in 3 of the last 4 economic downturns.

Has grown over 25% in recent years.

Sustainable and fair to the environment for current and future generations.

So What Is It? – Timber!

When considering investment options, many do not realize that there are eco-friendly, sustainable options for investing in timber that can actually help to improve the environment!

Silvinvest highlights several investment opportunities that are not only “Green” but offer superb potential returns. We explain how to invest using Cash or an existing UK Personal Pension. We also offer ideas and ways to provide investment returns to support your heirs’ long term financial future.

All of the marketed Forestry Plantations covered by Silvinvest are sustainable; this means that a method of plantation management is used that ensures profitability for investors, while preserving the environment. The importance of investing in sustainable timber cannot be underestimated. Legislation is being enacted by various governing bodies to stop the illegal harvest and logging that are devastating so many of the world’s old growth forests.

By investing in Timber, you are doing your little bit to help preserve the one resource that is responsible for the following;

1.6 billion people worldwide who depend directly on forests.

The majority of the world’s oxygen.

70% of the world’s cancer fighting drugs.

Up to 30% of land surface.

Ecosystems that are totally dependent on the world’s forests for survival.

The forests that you the investor help to create and the forests you help protect will take in vast quantities of carbon dioxide through the process of sequestration. This in turn will be converted into clean, breathable air, helping to reduce the CO2 within our atmosphere.

At Silvinvest, we are marketing certain investment plantations that can provide:

Transparency

Sustainability

Legitimacy

Potential

Rewards

Silvinvest also provides a helpful service where you can view brochures from responsible timber plantations. Access to the potential returns calculator so that any investor can quickly “crunch the numbers” associated with this investment class and easily see the potential value of investing in timber.

For example, estimates indicate that an investment of £18,000 in Costa Rican Melina Trees can be worth £104,189 at the end of a 12 year investment cycle.

Timber is a renewable resource that has been successfully traded for hundreds of years by many wise investors who have discovered the little-known fact that timber investments have generally outperformed stocks, bonds, and commodities over the long term.

This investment has remained remarkable immune to disruptions in the markets, or even political turmoil or terrorist attacks. The phenomenal growth of this industry when combined with various tax advantages, if held within a pension, that come from investing in commercial timber make this investment one that you cannot afford to at least educate yourself about before you make any decisions.

Since it is free to sign up for the newsletter and register to view brochures, downloads, investment calculators and more. Doesn’t it make sense to take a few moments of your time and learn more about the product?

Make a Change and Take Action Today.www.silvinvest.co.uk/articles

Pay As You Grow

Pay As You Grow is a saving fund for toddlers and children. It is directed at parents or grandparent’s who want to invest money for their children or grandchildren (legal guardians can also contribute). Since most saving accounts’ interest pays a pittance, finding a growth investment makes perfect sense.

Why Invest For Your Child’s Future Benefit?

Well, think of rising university tuition fees. According to BBC, at 2010 tuition levels, a student may well end up with a staggering £25,000 debt. Now, imagine the amount of debt going forward as new university tuition fees massively increase from 2012 onwards. Should you have more than one child, the potential financial burden is huge for any normal professional working family.

Another reason to save and invest an amount of money every year is many parents would like their children to be able to get on the property ladder. Currently, the average first time buyer age is 37 and this could possibly increase in future years. Until, as adults, they are able to pay off their mortgage, most of today’s young people will face retirement without any significant savings. Couple this with the fact that most of us live longer lives which will need to be funded from an ever stretching retirement pot, and you get a very clear picture of your offspring’s future.

What is Pay As You Grow?

Pay As You Grow is an investment in teak wood forestry plantations. What the investment basically does is fund the planting and growing of teak tress. In other words, it is a commodity investment. Investment in teak wood and forestry plantations has been, until more recently, the preserve of big investment funds.

Teak wood is the wood of choice for many Asians as it symbolizes quality and durability. Actually, teak is one of the most valuable of hardwoods because it can be used in construction, furniture, and marine applications. This makes it a price full commodity which has been producing fantastic returns every year for the last thirty years.

The way Pay As You Grow works is to plant teak wood trees and let them grow for 25 years and then harvest them and reap the financial benefit Also, a massive plus is the investment has come from a sustainable source and relieves the pressure somewhat on the long-standing and protected natural teak forests from illegal logging. Timber is a massive industry which ranks below only oil and gas in its size. Timber has uses in so many ways, just look around and see. Annually we use 50% more timber based products than what nature can provide.

All you need to do to take advantage of this opportunity is to invest a minimum sum of £3,600 in your child’s name. Your child in return gets allocated 50 teak trees and sublease agreement for the land on which they stand. You can include the investment into a Self Invested Personal Pension (SIPP) in your child’s name and receive 20 percent tax relief. Though, bear in mind that this option has some small annual administration costs. If investing via a SIPP, under current rules your child would not have access to returns until age 55 but can obviously reinvest returns from Pay As You Grow after year 25. This really does go a long way to providing considerable funds for when your child enters retirement.

If investing cash, the returns will go a long way towards paying university debt or used as a deposit on a house, for example.

Here at www.silvinvest.co.uk we host a Sales Brochure in our registered members area. The brochure also outlines various important and fun benefits to an investment. Just pop in your name and email address and you will have full access to the relevant documents. If you feel you would like to discuss the investment further, we have consultants available to deal with your queries and help with applications. Call on 0151 420 1765 for further informationwww.silvinvest.co.uk/articles

Tree Farms Are Becoming a Popular Investment.

Tree Farms Are Becoming a Popular Investment.

An area that is planted with trees for the purpose of producing timber is known as a tree farm. Tree farms are usually owned on a private basis and can refer not only to forests but to plantations and tree nurseries too. Both plantations and tree nurseries refer to places where trees are grown, for sale to commercial endeavours or retail markets.

Tree farms start with the planting of saplings, which are leaves that are either harvested or have been naturally dropped from trees. The investors then wait for these saplings to grow into trees. When the trees mature, they are harvested for wood and also for more saplings, which are then used to replace the trees that have been cut down, to grow a new generation of trees.

This process of regeneration can be repeated indefinitely so that a constant supply of trees is produced without the need for adding more land to the tree farm. This, in turn, serves to protect the environment as the area surrounding a tree farm can be conserved and maintained for its original purposes.

Those who invest in tree farms have the choice of the size and type of trees they plant. Some investors prefer to plant larger trees as these trees yield more timber per sapling while most investors in tree farms prefer planting smaller trees as the amount of wood or trunk as compared to the amount of leaves is less, and all the wood can more easily be harvested from the ground.

There are many different types of trees that can be planted in tree farms and the type of tree that an investor plants depends on the needs of the investor and the type of return that is desired.

One of the more popular trees used in tree farms is the melina tree (Gmelina Arborea). Melina has a high density and is used extensively for building materials and furniture. The wood has a off white appearence and this creamy colour enhances its demand for the packaging industry. The Melina is planted in Costa Rica, a perfectly suited environment for the species. It needs to be planted 10 degrees either side of the equator for it to flourish. Melina is a quick growing species and can reach 100 feet tall within 12 years and this is another reason for its popularity. In more temperate conditions a tree (oak for example) would require a much longer growing cycle before it would be suitable for harvest.

Melina is the wood of choice for pallets used in transportation. With consistent and rising demand, and with a ready-made market for this wood, it is easy to see why the Melina tree is a popular investment.

Another type of tree that can be planted in tree farms is the Teak tree Tectona Grandis. Teak is a tropical tree renowned for its grain quality that produces durable hardwood used extensively in furniture; house building, and yachts. Growing demand for teak wood, coupled with limited international supply, suggests that increases in teak prices should continue steadily. New Teak Forestry Plantations generally have a growing cycle between 20-25 years as the plantation is fully managed and use new practices to help with biological growth.

When investing in tree farms, an investor needs to carefully investigate and research the situation in order to determine which size and type of tree best suits their investing requirements.

Silvinvest highlights some fantastic investment opportunities that are not only Green but offer superb potential returns. We explain how to invest using Cash or an existing UK Personal Pension. We also offer ideas and ways to provide investment returns to support your child’s long term financial future.www.silvinvest.co.uk/articles