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Stellar Asset Management offers UK forestry fund
25/03/2009
A new fund that allows people to invest in UK forestry, is being launched by Stellar Asset Management.
The Forestry Investment Consultancy is running the First Stellar Forestry Fund, which will set about acquiring UK woodland, which is half-mature. Stellar hopes to raise £5 million for the fund, which has a minimum initial investment of £15,000, after which investment can only be made in multiples of £5,000.
Stellar says the fact that no tax is charged on harvested timber will benefit the fund. Other positives involved with investing in forestry include the fact that forestry investment are eligible for business property relief, which protects investors against inheritance tax after two years. There is also no capital gains tax charged on the growth in value of forests over time.
Chief executive officer of Stellar, Jonanathan Gain, says, ‘forestry is a low risk asset-backed ethical investment. Returns are generated from the timber harvest and the increase in land values in addition to potential income streams from non-forestry activities such as sports or communications masts. In the current economic environment a long-term lower risk investment generating returns from physical assets is likely to be attractive to many investors.”
The fund is intended to outperform the IPD Forestry Index and will charge initial commission of 3%, followed by renewed commission of 0.25%.
The Forestry Investment Consultancy is running the First Stellar Forestry Fund, which will set about acquiring UK woodland, which is half-mature. Stellar hopes to raise £5 million for the fund, which has a minimum initial investment of £15,000, after which investment can only be made in multiples of £5,000.
Stellar says the fact that no tax is charged on harvested timber will benefit the fund. Other positives involved with investing in forestry include the fact that forestry investment are eligible for business property relief, which protects investors against inheritance tax after two years. There is also no capital gains tax charged on the growth in value of forests over time.
Chief executive officer of Stellar, Jonanathan Gain, says, ‘forestry is a low risk asset-backed ethical investment. Returns are generated from the timber harvest and the increase in land values in addition to potential income streams from non-forestry activities such as sports or communications masts. In the current economic environment a long-term lower risk investment generating returns from physical assets is likely to be attractive to many investors.”
The fund is intended to outperform the IPD Forestry Index and will charge initial commission of 3%, followed by renewed commission of 0.25%.
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