FAQ
We understand that Forestry Investment is new to some of you. This is why we have assembled this list of answers for your review. If you have any further questions, please contact us, and we will be glad to address any inquiries you may have.
Fund Questions
Q: What is the size of the fund and its performance track record?
A: Asia Forestry is a fairly new company with directors who have long history in managed forestry and forestry investment. However, the underlying investment is established with large organizations and co-operatives that have been established since 2003 having assets in excess of US$10,000,000. For the Agar product, the purchaser of our oil has been established since the 1950’s and is valued in excess of US$50,000,000.
Q: What is the management fee structure? How are the managers of the fund rewarded, by performance? Is there any front end or back end loading?
A: All management, administration and maintenance fees are included in the contract price.
Q: What regulation covers the investment?
A: We follow the rules and regulations established by the Financial Services Commission of Jersey.
Q: Who will manage my investment?
A: Asia Forestry Management is responsible for all aspects of project management including, but not limited to, engaging forest contractors and supervising their work as well as providing administration, financial and business management.
Q:What is the nature of the fund, open-ended or a closed fund? Is it quoted (or listed)?
This is not a traditional unit trust/mutual fund. With Asia Forestry, we enable you to purchase the trees directly, and they are then held until maturity.
Q: Can I redeem my holdings early?
A: We are unable to offer early redemption. However, we will try and find a purchaser for your holdings; this is done via secondary market placement, so may take some time and will affect your returns.
Q: Am I liable for debts of other investors in the project?
A: No. This is not a shared investment scheme of any kind. Our investment projects are carefully designed to avoid such risks. It is our practice to fully fund the requirements of each individual project early in its life, so all early expenditures and taken care of, as well as having sufficient funds on hand to meet ongoing administrative and maintenance costs. No ongoing capital contributions will be required from investors when projects are fully funded in this manner.
Q: Are your plantations certified as sustainable by an independent body such as the Forestry Stewardship Council (FSC)?
A: The FSC is a body which pertains only to timber products. For our upcoming Teak plantations, we will be abiding by the rules set up by the FSC. For the Agar investments, the production and sale of the investment are based on the oil, which is a Non-Forestry Timber Product (NFTP), and are not eligible for the FSC certification.
Q: Is the fund insured for flood, theft and fire?
A: Agar grows much better on hillsides and slopes, and all of our plantations are located in non-flood areas. The assets are protected with physical security as well as maintained by fire prevention wardens. If any of your trees die unexpectedly, we do have reserve stock waiting to replace your tree. This is an added area of protection to support your investment. Should you require additional insurance please contact us directly.
Q: What about pests and diseases?
A: The main species in Thailand, Aquilaria, is a remarkably healthy species. It was selected from a range of exotic trees as being the most suitable for the micro climatic environment it requires. Generally, forest health is not a major risk issue. Of course, there is risk from imported pests and Thailand, as are all countries, is dependent on its border protection services to intercept these. In the case of our short term investments, the trees have reached semi maturity and therefore passed through the mortality risk stage.
Q: Do I own the land?
A: In most cases Asia Forestry holds the freehold/leasehold of the land and will return it to the co-operative after harvest and repayment. However for large investors the lease/freehold may be assigned directly to the client; please contact us directly for more details.
Q: Why should I invest in forestry?
A: Our answer to this is distributed throughout our website and brochures, and we encourage you to read more to understand this powerful investment option.
Forestry is an investment that requires little or no active management, but continues to grow and increase in value throughout its life. It is a very low risk investment that balances more potentially volatile investments in your portfolio like shares, bonds and property. This low risk investment can offer high returns over short and long periods; you can see from history that forestry investments are generally protection from inflation and a hedge against downturns in the stock market.
Stock markets don’t affect trees, nor do changes in the law. For example, here in Thailand there have been many changes in the laws recently - making it harder for foreign investors to purchase properties. If this legal trend persists, combined with the large amount of construction currently in process, the price of real estate will drop even more. In another example, the real estate market in the US was very profitable not so long ago, and now most would be looking elsewhere to invest their money. Invest in our forestry investment products, and you are protected from these kind unforeseen challenges.
Forestry has long been looked at as a hedge against fluctuating stock prices. Some of your investors will certainly like this characteristic. This is one of the most powerful selling tools of forestry. Regardless of the vehicle, history has proven that you are almost guaranteed to make a profit.
Q: What is the minimum/maximum age to invest? Am I too old?
A: Typically, the minimum age is 18, although you can purchase on behalf of a minor. There is no maximum age to invest in forestry investments.
Our forestry vehicles range from 2 years to 20 years, which makes them a candidate for people of all ages, and can be used to produce lump sum or income returns.
Forestry is also a great way to fund for your children’s or grandchildren’s future, by purchasing an asset which will consistently grow in value as they get older.
14. Is the world oversupplied with wood?
The market outlook for timber from Asia is extremely positive. Global supply is determined by factors such as log price, proximity to transport infrastructure and a government’s environmental policies; the actual growth of trees is not as relevant.
Asia is in an excellent position as a low cost producer, with forests grown in an environmentally sustainable manner close to shipping ports. It can therefore continue to supply logs profitably when other countries cannot afford to do so. Asia needs to continue to develop its markets and its processing industry so that it can get the maximum return from its forests.
15. What are the risks in forestry investment?
With forestry investments, there are always the risks of fire, storm damage, pest and disease. However, because the plantations are managed with physical security and forestry wardens, these risks are very low. The trees are pruned and the forests are thinned, heavily reducing the risks of natural disasters. Mortality rate is generally very low, and all trees which do not survive the initial planting are replaced.
The main risk for any of the NFTP (Non-Forestry Timber Products) would be the demand for that product, such as the Agar oil.
Q: Is the fund insured for flood, theft and fire?
A: Agar grows much better on hillsides and slopes, and all of our plantations are located in non-flood areas. The assets are protected with physical security as well as maintained by fire prevention wardens. If any of your trees die unexpectedly, we do have reserve stock waiting to replace your tree. This is an added area of protection to support your investment. Should you require additional insurance please contact us directly.
Plantation Questions
Q: Are your plantations certified as sustainable by an independent body such as the Forestry Stewardship Council (FSC)?
A: The FSC is a body which pertains only to timber products. For our upcoming Teak plantations, we will be abiding by the rules set up by the FSC. For the Agar investments, the production and sale of the investment are based on the oil, which is a Non-Forestry Timber Product (NFTP), and are not eligible for the FSC certification.
Q: Is the fund insured for flood, theft and fire?
A: Agar grows much better on hillsides and slopes, and all of our plantations are located in non-flood areas. The assets are protected with physical security as well as maintained by fire prevention wardens.
If any of your trees die unexpectedly, we do have reserve stock waiting to replace your tree. This is an added area of protection to support your investment.
Should you require additional insurance please contact us directly.
Q: What about pests and diseases?
A: The main species in Thailand, Aquilaria, is a remarkably healthy species. It was selected from a range of exotic trees as being the most suitable for the micro climatic environment it requires. Generally, forest health is not a major risk issue. Of course, there is risk from imported pests and Thailand, as are all countries, is dependent on its border protection services to intercept these.
In the case of our short term investments, the trees have reached semi maturity and therefore passed through the mortality risk stage.
Q: Do I own the land?
A: In most cases Asia Forestry holds the freehold/leasehold of the land and will return it to the co-operative after harvest and repayment. However for large investors the lease/freehold may be assigned directly to the client; please contact us directly for more details.
Genelar Questions
Q: Why should I invest in forestry?
A: Our answer to this is distributed throughout our website and brochures, and we encourage you to read more to understand this powerful investment option.
Forestry is an investment that requires little or no active management, but continues to grow and increase in value throughout its life. It is a very low risk investment that balances more potentially volatile investments in your portfolio like shares, bonds and property. This low risk investment can offer high returns over short and long periods; you can see from history that forestry investments are generally protection from inflation and a hedge against downturns in the stock market.
Stock markets don’t affect trees, nor do changes in the law. For example, here in Thailand there have been many changes in the laws recently - making it harder for foreign investors to purchase properties. If this legal trend persists, combined with the large amount of construction currently in process, the price of real estate will drop even more. In another example, the real estate market in the US was very profitable not so long ago, and now most would be looking elsewhere to invest their money. Invest in our forestry investment products, and you are protected from these kind unforeseen challenges.
Forestry has long been looked at as a hedge against fluctuating stock prices. Some of your investors will certainly like this characteristic. This is one of the most powerful selling tools of forestry. Regardless of the vehicle, history has proven that you are almost guaranteed to make a profit.
Q: What is the minimum/maximum age to invest? Am I too old?
A: Typically, the minimum age is 18, although you can purchase on behalf of a minor. There is no maximum age to invest in forestry investments.
Our forestry vehicles range from 2 years to 20 years, which makes them a candidate for people of all ages, and can be used to produce lump sum or income returns.
Forestry is also a great way to fund for your children’s or grandchildren’s future, by purchasing an asset which will consistently grow in value as they get older.
Q: Is the world oversupplied with wood?
A: The market outlook for timber from Asia is extremely positive. Global supply is determined by factors such as log price, proximity to transport infrastructure and a government’s environmental policies; the actual growth of trees is not as relevant.
Asia is in an excellent position as a low cost producer, with forests grown in an environmentally sustainable manner close to shipping ports. It can therefore continue to supply logs profitably when other countries cannot afford to do so. Asia needs to continue to develop its markets and its processing industry so that it can get the maximum return from its forests.
Q: What are the risks in forestry investment?
A: With forestry investments, there are always the risks of fire, storm damage, pest and disease. However, because the plantations are managed with physical security and forestry wardens, these risks are very low. The trees are pruned and the forests are thinned, heavily reducing the risks of natural disasters. Mortality rate is generally very low, and all trees which do not survive the initial planting are replaced.
The main risk for any of the NFTP (Non-Forestry Timber Products) would be the demand for that product, such as the Agar oil.





