Sicirec Forestry Mixfund

The Fund's investment target is 60% of its capital in shares of plantation forestry companies, 30% in hectare contracts and 10% in CO₂ emission rights produced by plantation forestry projects.

By spreading the available capital over these three categories the Fund intends to create an agreeable risk profile.

The Fund aims at an internal rate of return of 8% or more. The minimum deposit is € 50,500.

Investment policy

As a result of economic growth and increasing environmental awareness amongst consumers, the worldwide demand for sustainably produced timber will continue to rise.

Growing timber demand by countries like China and India is likely to result in additional timber price increases.

The long growth cycle of trees limits the speed with which the supply of tropical hardwood can be increased. Currently, supply is even decreasing because of limitations on the felling of primary forests.

Research has shown that from 2015 onward a sharp shortage of tropical hardwood will gradually develop.

Further increase of timber prices is therefore expected for the future.

More information:
Fund details 31 December 2012

Sicirec rating model

For the selection of assets for the Fund, we use the Sicirec rating model. This model has been developed over the past 15 years.

Plantation forestry companies are evaluated on their forestry, ecological, financial and governance aspects and on quality and experience of the management. This way, the Fund selects assets that combine financial revenue with an ecological added value.

Specific opportunities

The Fund generates extra returns by purchasing shares and hectare contracts in non-liquid markets at sharp prices.

The Fund further increases its performance by purchasing shares and hectare contracts of projects suffering temporary liquidity problems; so-called distressed forestry assets.

Risks

Every investment by the Fund is carefully assessed. The nature of the investments and the investment policy make the Fund attractive, but also imply a certain risk.

It is possible that your investment in the Fund provides little or no additional return, or that you may, in the worst case, lose (part of) your investment.

For further information we refer to the Forestry Mixfund prospectus. Your decision to invest should be based on the prospectus.