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OPENING OF FIM SUSTAINABLE TIMBER & ENERGY LP FOR FURTHER SUBSCRIPTION

View from Mynydd Portref turbine

The Fund is designed for HNW investors seeking tax efficient capital appreciation and 100% relief of IHT, with the two year qualifying period commencing immediately on investment as the Fund is an established trading business. The portfolio targets sustainable investments in commercial UK forestry and UK based renewable energy projects.

The unique attributes of the Fund provide a significantly more attractive investment route than listed vehicles, as being tax transparent it allows tax free distributions to members, whilst ensuring the benefit of 100% IHT relief. Further, as it owns assets directly it is protected from the market volatility associated with AIM shares, and is not correlated to main market indices, providing investors with diversification from mainstream investments.

These benefits accrue to investors with only a limited compromise on liquidity. The average investment in the Fund is £135,000. Liquidity on such sums is difficult to secure in many AIM stocks, but in the Fund the average transaction time for disposal of a holding is 47 days, with trades historically taking place at a premium to NAV.

In essence the Fund combines a highly tax efficient structure with the provision of an element of liquidity.

Through the Manager, FIM, the Fund has good corporate governance but without the additional costs of a listed vehicle. This enhances returns to investors, as the total expense ratio is only 0.6%.

These benefits come in a business which has shown excellent returns to date, making it materially different to many IHT vehicles. Being 100% asset backed the LP protects capital, but is structured so that capital growth should result from the natural growth in both the volume and value of the core forestry portfolio, with regular distributions being readily funded from the renewable energy section of the portfolio.

Richard Crosbie Dawson – MD “FIM Sustainable Timber & Energy LP is our flagship fund, which has shown excellent performance to date. Established in 2010 it has nearly completed four years of trading and generated an IRR of 14.7%, all within a structure designed to provide 100% relief of IHT. The combination of annual distributions, targeted at 3% net of tax, and capital growth is particularly attractive in an era of continuing low interest rates and highly priced stock markets".



George Krempels – Fund Manager “We believe that now is an opportune time to expand the fund. Firstly to acquire further forest properties which underpin capital growth, before the expected rise in timber prices is manifested; and secondly, to increase the holding in renewables to the 20% limit in order to utilise the secure revenue that they generate to underpin annual distributions”.

For further information please contact George Krempels on 01451 844655 email: george.krempels@fimltd.co.uk