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Categories: Investment| SRI
Alternatives specialist The Investor Club is to offer a SIPP and SASS ready investment in tropical timber which will give investors access to teak plantations in Sri Lanka.
Investors will buy units of trees which are planted on land they have leased in plantations protected and maintained by one of the world's oldest and most sophisticated forestry commissions.
"Sri Lanka has been growing teak for hundreds of years because it has the perfect climate and soil conditions," The Investor Club founder Matt Ames says.
"The returns are phenomenal and what I like most about this is the tangibility. For example, the longer you retain ownership of the trees they are physically growing. If the value of timber is growing at 10% per annum, you also have the added bonus that the size of your tree, and ultimately your commodity is growing too which means a double pay-day."
The Investor Club believes restricted supply of teak will boost returns as while 100bn board feet of teak is commercially consumed each year, at the same time the de-forestation of the rainforest is decimating the supply chain.
In addition, the Forest Stewardship Council, which regulates the supply of teak from sustainable sources says that currently only 1% of commercially consumed teak comes from such sources.
"It is a classic supply and demand scenario heavily weighted in favour of the investor while at the same time there is that terrific feel-good factor about doing good to the world and helping slow down the process of global warming," Ames says.
The Investor Club is currently in the process of recruiting new distributors for the timber investments with commission available. Contact 0845 888 2211 or email Neelam Springer at nspringer@theinvestorclub.co.uk.
IFAonline
Categories: Investment| SRI
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