- 31st January 2012
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Emerald Knight delivers fixed annual returns of up to 12.5% on timber investment, plus 1.5% bonus from thinning proceeds
Emerald Knight, the ethical investment specialist, has delivered a fixed annual return of between 10 and 12.5 per cent, depending on the size of the initial investment, to investors in its exclusive Brazilian Teak Forestry project. In addition, investors are receiving an average bonus payment of 1.5 per cent from the proceeds of the timber thinning process.
Emerald Knight said: “The fact that this kind of investment model is performing to its original annual target offers investors the reassurance they need in an uncertain market. The project has served as an ideal introduction to Socially Responsible Investing (SRI) for many of our clients, due to its low entry level of £5,000, while a large number of our more experienced clients have also taken the opportunity to get involved. And it’s proved to be a very profitable investment for both.”
The firm says that global demand for hardwood has multiplied 25 times in the past 40 years. And with only 13 per cent of the world’s surfaces covered with forests and growing concerns over deforestation and illegal logging, combined with the spectre of global warming, supply is severely restricted.
One of the wood types most readily associated with deforestation in recent years has been Teak. With a high natural oil content, the wood is renowned for its strength and durability, and not only provides investors with a commodity that is growing in demand, but one which can help to protect the environment.
Teak is a fast-growing species. At just six months, the trees are already around three metres tall, and within two years are well-established with a considerable canopy mass. Alongside this fast growth, Teak has fast rates of sequestration, meaning that large amounts of carbon are absorbed from the atmosphere and stored in the wood at very high levels.
“The Teak investment is unlike any other commodity. It yields more stable returns than the stock market, outperforms other commodities in high and low inflation environments, and unlike real estate, timber land is limited and can’t be overbuilt. Essentially, it’s a long-term, low-risk investment.”
Emerald Knight’s Teak investment involves semi-mature trees and offers a fixed 10 per cent annual return, increasing to 12.5 per cent depending on the size of initial investment. There’s an additional bonus from the ‘thinning’ years which is given after the first year of investment, then every four years thereafter. The investment period is up to 17 years, with an option to exit after three years with a five per cent capital uplift.