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Why Invest in Forestry…?

Why Invest in Forestry…?. Woodlands have been a sound investment for centuries. Woodlands have been a sound investment for centuries Over 40 years the Standard & Poors 500 has returned 11.6% per annum. Woodlands have been a sound investment for centuries

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Why Invest in Forestry…?

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  1. Why Invest in Forestry…?

  2. Woodlands have been a sound investment for centuries

  3. Woodlands have been a sound investment for centuries • Over 40 years the Standard & Poors 500 has returned 11.6% per annum

  4. Woodlands have been a sound investment for centuries • Over 40 years the Standard & Poors 500 has returned 11.6% per annum • Over the same period a Forestry Portfolio would have returned 13.3%

  5. Only 3 commodities have increased in real value over the past 10, 40 & 100 years

  6. Only 3 commodities have increased in real value over the past 10, 40 & 100 years • Gold

  7. Only 3 commodities have increased in real value over the past 10, 40 & 100 years • Gold • Oil

  8. Only 3 commodities have increased in real value over the past 10, 40 & 100 years • Gold • Oil • Timber

  9. How do these commodities compare?

  10. What is the difference ? • Both Gold and Timber increase in price, but... • 99.5% Fine Gold purchased 10 years ago is still 99.5% Fine and weighs the same • Forestry Timber grows in volume and quality, year on year

  11. How much risk is there? • The majority of forest fires occur in natural unmanaged forests • Less than 0.5% of commercial forests are damaged by fire • Firebreaks, lookout towers and trained fire fighters reduce risk • Insurance covers losses

  12. How much risk is there? • Forestry is remarkably low risk • Volatility is more akin to bonds than stocks • It tends to perform best when stocks and bonds are depressed • It makes an ideal counterbalance in a spread portfolio

  13. How much risk is there?

  14. How Sustainable is Forestry? • The real price for timber has steadily risen for over 100 years • Unlike oil, gas or coal there are no hidden deposits to expand supply • Despite substitutes as diverse as steel, plastic and stone, people still want and need wood • In contrast to other building material, timber is renewable

  15. Why Invest in QUADRIS…?

  16. Why Invest in QUADRIS…? Our key criteria ensure all investments are: • Ethical • Sustainable • Environmentally Sound • Socially Proactive

  17. Why Invest in QUADRIS…? • Ethical The minimum wage on plantations is more than 30% higher than the legal minimum

  18. Why Invest in QUADRIS…? • Sustainable 26,000 hectares of plantations have been established since 1994. Planting continues at a rate of 3 – 4,000 hectares per annum

  19. Why Invest in QUADRIS…? • Environmentally Sound To date more than 16,000 hectares of land have been placed under protection for natural forest regeneration

  20. Why Invest in QUADRIS…? • Socially Proactive In co-operation with UNESCO, more than 500 children and adults are receiving improved education

  21. Why Invest in QUADRIS…? All the 26 plantations into which we invest are expertly managed by Floresteca Agroflorestal Ltda. A company with 3 generations of experience in forestry

  22. Why Invest in QUADRIS…? Floresteca AgroFlorestal Ltda.’s operations have been certified in accordance with: • Forest Stewardship Council Guidelines • Kyoto Protocol CMS Standard GHG 031 • ISO 14001 • 2005 Agribusiness of the Year in Brazil

  23. Why Invest in QUADRIS…? QUADRIS Environmental Fund PLC offer three investment options • Variable Growth Rate Shares • Fixed Rate (6.75% p.a.) Accumulation Shares • Fixed Rate (6.50% p.a.) Distribution Shares

  24. Why Invest in QUADRIS…?

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