What are the Irish Forestry Funds and where are they based?

First launched in 1997 with the Second Irish Forestry Fund Plc the Irish Forestry Funds have grown in number to 26 separate companies.  The purpose of the Irish Forestry Funds is to allow the average investor to gain the benefits of forestry as a form of investment and to benefit from the generous government grants that are available in Ireland along with the tax benefits that forestry enjoys.

Over the years there have been three different types of Irish Forestry Funds:

• The Irish Forestry Funds - these were thirty year forestry funds that allowed investors benefit from the returns gained as a result of the full forest rotation
• The Forestry Investment Plans - these were ten year forestry funds that were structured to take advantage of the emerging semi-mature forestry market (this is defined as forestry that is in mid-rotation, for example 10-15 year old forestry).  The Forestry Investment Plans continued to acquire approximately 50% bare land that was then planted utilising the generous forestry grants available.
• The Forestry Growth Plans - these are twelve year forestry funds specifically designed to take full advantage of the benefits of investing into semi-mature forestry.

While the names have changed down the years they are collectively referred to as "The Irish Forestry Funds".

The first of the Irish Forestry Funds was launched in 1997 by the promoters of IFS and to-date twenty six Irish Forestry Funds have been launched with a collective asset value of €100 million

The Irish Forestry Funds are a unique brand and have successfully increased retail investor awareness of Irish forestry as a safe, secure and tangible investment.

Irish Forestry Investment

Prior to the establishment of the Irish Forestry Funds, modest investors were unable to avail of the tax efficiencies, EU and Irish government grants and premia income available to farmers and wealthy individuals.

The Irish Forestry Funds enabled investors to make a minimum investment of €750 and reap these benefits. To-date, in excess of 18,000 individuals have done just that.

Why is Forestry Investment important in Ireland?

With the ongoing reform of the Common Agricultural Policy (CAP) and the accession of new EU members, it is apparent that the current levels of farmer supports will not be sustainable in the medium term.

Hence the EU is directing its resources (through generous forestry grants and premia) to alternative land use. Ireland is the least afforestated country in the EU, with only 10% of the land mass under forest cover compared to an EU average of 42%. Additionally, trees grow up to three times faster in Ireland than elsewhere in Europe.

How does I.F.S. Asset Managers Ltd fit into this?

IFS Asset Managers Ltd (IFS) is the Forestry Asset Manager to the Irish Forestry Funds.  IFS provides forest management (including oversight of forestry and land acquisitions), administrative and other support services to the Irish Forestry Funds.

Kyoto

Ireland’s CO2 emissions per capita are among the highest in the world and we need to increase the level of forest cover dramatically to help counter the effects of increasing pollution emissions. Under the Kyoto Agreement, Ireland is committed to CO2 emission levels of 12% above 1990 levels by 2012, or just under 54 million tonnes of gases. At present, Ireland has already exceeded its agreed emission levels.

Forests are internationally recognised as a major factor in the capture and storage of carbon dioxide.