OXIGEN PLC.COM

Timber Investments in
South-East Asia
Oxigen InvestmentsPlc 0800 021 3344
An ethical way to watch your money grow
Not all investors see profit as their only motivation. Many have sought to square the circle by
seeking out investments which also meet ethical and socially responsible standards. In that
context trees take some beating. Trees are a major force in the fight against global warming.
Forests help offset climate change because trees absorb carbon dioxide, one of the main
greenhouse gases.
All across the great rainforests of South-East Asia, trees have been felled to make way
for agricultural land, new roads or expanding towns and cities. Many countries have clamped
down on this indiscriminate and often illegal activity, but the damage has been done.
One response to this, encouraged by governments, has been the steady growth of
commercial tree plantations. Not only does this reforestation begin the process of replacing the
naturally-grown trees, but it also creates a virtuous circle because as trees on these commercial
plantations are harvested new ones are planted to replace them.
From an investment perspective, becoming involved in commercial plantations is
straightforward. You buy a block of trees, either already in the ground or ready to go in as
seedlings, and literally watch your money grow. When the trees are harvested, investors take
the profit from their sale.
Taking two typical species of tropical trees, these are the sort of returns you can expect:
• Agarwood. 350 of these fast-growing trees with an initial cost of £10,000 are projected
to produce a return of £47,880 in just six years.
• Teak. 300 trees costing £10,000 are projected to return £193,000 net over a growing
span of 16 years.
These returns are calculated by looking at today's average harvest values for each type of wood.
You then look retrospectively at the respective annual increases during the last ten years and
use these as a guide when projecting potential future maturities. But, as a health warning all
investors should mark, past performance is no guarantee of future outcomes.
This article will hopefully go some way though to describing the exciting developments
in forestry – not least on the scientific front. There is much more to growing trees than meets
the eye. The modern plantations benefit from scientific breakthroughs which speed up both
quality and shorten growing times.
All of which makes timber is a unique investment over the relatively short or longer term
which is genuinely green - and helps save the planet.Ring now 0800 021 3344 for more info