Investors grow with us

Transcription

1 Global Forestry Capital Investors grow with us GLOBAL FORESTRY GROWTH FUND Unlocking new opportunities within alternative markets LFP PRIME SICAV SIF S.A.

2 Minimal Correlation, Minimal Risk Investors understand that volatility within traditional investment markets is here to stay. Today, safety and stability are available within forestry investments, considered as an alternative investment asset class. Forestry assets provide minimally correlated returns, limited credit risk and an early market entry point. In the traditional markets it is necessary to accept a higher than market risk in order to outperform the indices. Forestry assets are real assets, with a long history of preserving and increasing wealth over the long term. Research shows that by adding forestry to a portfolio, potentially much higher returns can be anticipated, without taking any additional risk. Alternatively, investors can anticipate similar returns but with less risk. Our priority is to provide investors true market neutral investment opportunities along with the security of cash equivalent assets. Demand exceeds Supply The global timber industry continues to experience significant growth, with an estimated demand for 1.8 billion cubic meters (m 3 ) in 2010, which is expected to reach 2.1 billion m 3 in the next decade. The driving force behind the expansion is the increasing demand, the growing population, the quality of the certification of the Forestry Stewardship Council (FSC) and the rising global environmental awareness. Page 1 2, , , , World Timber Supply Forecast Source: UN-FAQ 2003 (in millions of cubic meters) Supply Demand

3 Market Opportunity & Growth Asset Overview The assets in which Global Forestry invests in are commercially sustainable teak plantations, direct land investments and private equity opportunities within the largest global private teak plantation in the Mato Grosso region, Brazil. Wood is the unique renewable commodity to have increased in real value over the last 10, 40 and 100 years. Profiting from the 18 years of experience in sustainable forestry development, we provide investors with secure, ethical and socially responsible long term investment solutions. Uncorrelated to traditional investment markets Low volatility Asset-backed investment Global Forestry offers superior asset protection Historically attractive returns Positive market growth A Sustainable Asset Class While most assets are typically affected by interest rate fluctuations, earning projections or credit rating shifts, forestry assets are less sensitive to the volatilities of the global market. Forestry is quickly becoming a dominant financial asset, and Global Forestry is well positioned to exploit all opportunities within the forestry value chain. If you are interested in growth - consider Forestry - it has been outperforming the S&P 500 for decades! Page 2

4 Transparent & Tax Efficient Our Fund is a fully regulated onshore investment structure, approved by the CSSF (Commission de Surveillance du Secteur Financier), which is the financial regulatory authority in Luxembourg. Global Forestry s main objective is to guarantee investors a secure investment by using strategies that mitigate risks in liquidity, diversification and other asset valuation criteria. In response to this market need, forestry investments performance should use conservative valuation standards and ongoing fair market value practices to achieve long-term goals. Tax Efficiency Global Forestry uses tax efficient structures in Luxembourg, which is the European center for alternative investments. In order to mitigate compliance and transparency risk, Global Forestry offers investments with complete transparency in regulated investment vehicles. Valuation Risk In order to mitigate the valuation risk, Global Forestry employs only the most current valuation systems and independent valuation consultants. Research & Development The accumulated knowledge from 18 years of excellence in the forestry business makes us confident that essential attention should be put on the latest technology in cloning and R&D in general. This ensures that optimum growth and quality can be guaranteed in all the plantations we invest in. A unique approach to diversification. Page 3

5 Risks Concentration of Assets Liquidity of Assets Temporary Investments of Assets Risk Mitigation or Potential Outcome Diversify into a wide range of participations. Further diversification into Land Ownership and Private Equity. Staggered maturity dates providing balanced future cash flows. Short term investments in nonforestry liquid assets may yield lower return. Timely investments into forestry assets will reduce risk. Investment Advisor Due Diligence and Ongoing Monitoring Market Risk - The Investment Advisor will continuously monitor market trends to minimize the market risk. Natural Risk - Constant monitoring and effective counter measures minimize such risk. Growth Place - The Investment Advisor will monitor a combination of climate and soil factors that will have an impact on the forestry yield. Subsequent changes will be made to minimize any negative effect on return. Economic Risk - Timber s minimal correlation with key economic indicators reduce investor exposure. Investment Advisor will monitor broader global economy. The quality of management, particularly with respect to the selection of assets, and the terms and conditions of acquisitions and transfers, is essential to ensuring a good return on investments and therefore the success of the relevant Sub-Fund. However, there is no guarantee that the target return will be achieved, whether by reason of different market conditions applying than those on which the calculations were based or for any other reason. There is no guarantee that losses will not occur. Investing An open-ended fund that seeks to deliver above average returns for investors through a sustainable asset class: Forestry Investments. Our investments are made on: world s largest private teak plantation, in Brazil. Focused exclusively in our core competency: forestry assets. Offers returns with minimal correlation to traditional financial markets. Fund assets are valued using the expected future cash flows from future teak sales which are validated by an independent third party: Pöyry Consulting. Investors can choose to invest directly into the Fund or via a policy through an authorized insurance company. Global Forestry is the result of an innovative collaboration between our reputable parties: Global Forestry Capital, Investment Advisor The leading Luxembourg based forestry expert focused on forestry assets. ABN AMRO Bank, Custodian Committed to providing personal service while focusing on quality, accountability, reliability, and safety for customers over years. APEX Fund Services Ltd, Administrator Dedicated to institutional and corporate clients, Apex Fund Services is a world class central administrator with offices in more than 15 countries. Ernst & Young, Auditor Leading Big 4 accounting firm known for its high level of integrity, quality and professionalism. CSSF, Regulatory Body The Global Forestry Growth Fund LFP PRIME SICAV SIF S.A. is a fully regulated Fund under Luxembourg law. Page 4

6 The Investment Offering to which this brochure relates may be promoted in the United Kingdom only in accordance with section 21 of the Financial Services and Markets Act (an Act of Parliament) and the Financial Services and Markets Act 2000 (Financial Promotion) Order Consequently, this document is available only through Regulated Intermediaries authorised to promote such Investment Funds and to other Investment Professionals regulated by the UK FSA. RISK DISCLOSURE STATEMENT: The price of any security may move up or down. If it moves down, losses can be incurred which in some circumstances may extend to the full amount of the investment. Past performance is not necessarily a guide to future performance. This brochure is provided as a summary document. For full details of the Investment Offering, please refer to the current Global Forestry Growth Fund LFP PRIME SICAV S.A. Prospectus. GLOBAL FORESTRY CAPITAL SARL 9 rue Sainte Zithe L-2763 Luxembourg Tel :