Forestry

UK commercial forestry is a highly tax efficient sustainable real asset that diversifies an investment portfolio and provides exposure to timber prices, which are forecast to rise.

Investment Options

1. FIM Timber Funds

FIM provides access to forestry investments through timber funds promoted and managed by FIM.  These are designed to make the benefits of forestry available to a wide range of investors.

These timber funds are unregulated collective investment schemes (UCIS).  Such funds are subject to restrictions on how they can be promoted to investors.  FIM is regulated by the Financial Conduct Authority (FCA) in relation to the promotion, operation and management of UCISs.

In order to be provided with information in relation to such funds you must be either:

  • An investment professional authorised to advise on UCIS; or
  • A person who has completed the FIM Client Financial Information Form (“CFIF”) and has been assessed by FIM as being suitable and appropriate to invest in the fund due to being either a Certified High Net Worth Investor or a Self-Certified Sophisticated Investor; or
  • A person who is a Certified Sophisticated Investor; or
  • An Eligible Counterparty or Professional Client as set out in the FCA Handbook.

Potential investors have three routes by which to access information in relation to these funds:

  1. Request information to be delivered to your investment advisor authorised to advise on such funds; or
  2. Submit to FIM a valid Certified Sophisticated Investor certificate signed by an appropriate counterparty; or
  3. Complete a CFIF which requests information in relation to your circumstances to allow FIM to assess if an investment in a fund could be appropriate for you.  Click here to complete a CFIF. 

FCA approved financial intermediaries and investors accepted by FIM as appropriate persons following receipt of a Certified Sophisticated Investor certificate or following approval of information provided in a CFIF, will be provided with a password to access information on FIM’s funds on a secure section of FIM’s website.

This section of the website will thus only be available to appropriate persons who can consider investment in a UCIS directly or on behalf of their clients.


2. Direct Ownership

FIM implements direct investments in forest properties, which can be targeted to match an investor's specific requirements.  Direct investments into mature forests provide tax free income from harvesting in the short to medium term, whilst long term capital growth can be achieved through the acquisition of younger crops or bare land for afforestation.  Large scale forest assets generally provide a combination of both income and capital growth. 

  • Ability to generate tax free returns in any timespan from 1 to 35+ years
  • Planned to meet known future events
  • Ready liquidity through an active forest market

 A summary of FIM's Forestry Management Service can be downloaded here.

FIM provides a full independent investment management service, which includes:

  • Investment selection
  • Management supervision
  • Financial control
  • Valuations
  • Annual Report and Accounts
  • VAT administration
  • Banking if required
  • Insurance
  • Timber marketing
  • Property realisation
  • Research and performance analysis

Direct ownership of forestry assets is not regulated by the Financial Conduct Authority.