Partner Article

Helen Proudman from Darling Investments shares her expertise in timber investments

1. Why are timber investments so popular?

I think the turbulence of global stock markets has encouraged the popularity of these investments. Investors are increasingly nervous about investing into the stock market. This on-going problem with the Eurozone is driving even more investors to assets which are not correlated to stock markets or global economies.

2. Are there any risks associated with these investments?

Yes. They are classified as high risk investments, which is mostly to do with the location of the trees – in the Far East and the fact that they are ‘unregulated’, so you are not protected by the FSA if things go wrong. You have an English contract instead which is governed by English Law, so you do have something. You can see a full list of the risks in our timber report on our website. I certainly wouldn’t encourage anyone to put all of their money into this, but then you shouldn’t put all of your money into any one asset. Diversification is the key in an investment portfolio and there are risks in any investment.

3. What kind of a return can I expect from this investment?

It depends on the type of wood you decide to invest into. They all have different time frames. But, if we go with teak as an example, the company who manages all of the investments has given figures that you should get back around £235,000 in 20 years time from an investment of £15,000. From our own due diligence we have a range of between £140K - £800K. It depends on the quality of the teak, the grade of the wood, and its location.

4. What kind of due diligence have you done on these investments?

A lot! We have fully researched the market, the risks, liquidity, and global opportunities. We have spoken with tree growers here in the UK, people who sell timber, and wholesalers within the industry. We have spoken with the FSC (Forest Stewardship Council), we’ve looked at most timber investments out there, checked their figures, looked at the risks, liquidity, and we have assessed global opportunities for the production of timber. Demand is on the increase as the population grows and more countries have higher net wealth.

5. Why do you rate the investments on your website?

Their figures ‘add-up’ firstly. They are also a highly professional company, where you get a 14 day cooling off period, where contracts are sent to you for you to look at, think about, ie no hard sell. I personally hate hard sales, I’ve never done it, but I have been hard sold to myself and I think it’s just plain rude. I would never dream of doing that to someone else, either you want a product or you don’t. Simple. The companies we have selected have the same attitude as we do, so we are happy with the way they operate.

6. What kind of documentation do I get if I invest?

Contracts are set up between you and the company, which is governed by English Law. You get a certificate of ownership and other documentation as appropriate.

7. Do the local communities benefit from my investment?

Good question. Yes they do as the plantations will need more staff to work your investment, thus adding to an improvement in the local economy. The eco-benefits of this investment are good, since you are planting more trees for the environment for that space of time of your investment. So the planet will benefit from your efforts by reducing the amount of carbon dioxide in the atmosphere.

8. What’s the minimum investment?

You can start from as little as £3,995.

9. Will I own the trees directly?

Yes, this is a direct investment. Once everything is set up, your trees literally have your name on them. You can go and visit your trees anytime you like, although it would be courteous to make an appointment first.

10. How do I get involved?

Simply contact us at info@darlinginvestments.com or telephone 01325 313031 to get started. It is a very straight forward process, where you will have to provide money laundering documentation a bit further down the line. We take care of all of the paperwork for you. You get copies of the contracts to have a good look at, ask friends, and seek legal advice if you feel it is necessary. Only once you are entirely happy will you then proceed. If you change your mind before sending money or within the first 14 days of the investment then you simply walk away.

http://darlinginvestments.com/

This was posted in Bdaily's Members' News section by Helen Proudman .