Opalesque Industry Update - Treedom Investments Ltd, Fund Advisors, announce the launch of The Asia Renewable Resources
Fund (ARRF) giving institutions the opportunity to invest in a green and
“This is a Private Equity Fund being run on a hedge proposition basis to consolidate assets within the emerging markets on a project by project investment strategy” announced CEO Andrew Steel.
The Asian timberland and forestry market represent a unique opportunity for investors as, building on Treedom Group Ltd’s commercial projects currently in the region, ARRF offers access and consolidation to attractive sustainable and natural resources projects within one of the largest and untapped emerging timber markets.
Timber can be classified as a specialised long-term bond. A forest holds mature timber that generates cash each year through harvests that can be easily modelled and has no correlation to more traditional equity & financial market movements. Future demand is assured. Forecasts predicts that in China alone urban population will increase by over 350m people in the next 20 years, effectively requiring 50 cities the size of greater London to be constructed.
The ARRF Fund provides access to this projected growth in demand whilst also combining access to both long term yields and a unique opportunity for investors to generate returns through the provision of asset class forestry and agro-forestry products utilising a socially responsible investment strategy. “These are forestry investments made with due regard for people, communities, the environment and profit".
With abundant natural resources the region offers investors opportunities in commodities, industrialised products and service industries. The focus of The Asia Renewable Resources Fund is to invest in specially selected and sustainable forestry, agro-forestry & bio-energy projects throughout Asia. Providing international markets improved access to ethically sourced, managed and harvested forest & plantation based products and raw materials.
To minimise risk The Fund has adopted a multiple species investment strategy. Strategic investments will be made in land opportunities and a broad base of forestry species ensuring income is derived at multiple junctures and not solely reliant on large harvest revenues. Investing in tangible assets with exciting growth potential The Asia Renewable Resources Fund is looking for solid preservation of capital with alpha returns in the medium to long term.
KMG Capital Markets Luxembourg S.A. has been appointed as Global Investment Manager to ARRF which is defined as a Specialised Investment Fund, the auditors are Deloitte S.A. The Fund is open to Institutional Investors and Well Informed Investors, with typical investment horizons of five years and a minimum investment of USD10,000.
ARRF is offering investors the opportunity to enhance their environmental participation by providing them with the ability to share their profits from the fund with The PATT Foundation (www.pattfoundation.org) a UK registered charity working to take action against deforestation and climate change through native forest restoration.