INVESTMENTS EXPERIENCES IN TROPICAL FORESTRY:  OPPORTUNITIES AND CONSTRAINTS  Presented by:  Rico Dent, Inter-Alliance Int...
Presentation Outline <ul><li>We intend to answer two fundamental questions related to investments in forestry; namely:  </...
Sustainable Forest Management <ul><li>What is Sustainable Forest Management (SFM)?  </li></ul><ul><li>The stewardship and ...
Sustainable Forest Management <ul><li>There are three Pillars to Sustainable Forest Management:  </li></ul><ul><li>Environ...
Sustainable Forest Management <ul><li>Can Good Forest Management Mitigate Investment Risk?  </li></ul><ul><li>Proper manag...
Sustainable Forest Management  cont <ul><li>Can Good Forest Management Mitigate Investment Risk?  </li></ul><ul><li>Object...
Investment Trends in Forestry <ul><li>Rico add here </li></ul><ul><li>I recommend the following titles for the next slides...
Potential Revenue Streams from Forestry <ul><li>Clean Air  through plant respiration (Carbon Sequestration); </li></ul><ul...
Potential Revenue Streams from Forestry   <ul><li>Other reasons to invest in sustainable forestry practices:  </li></ul><u...
Suitable Investment Vehicles <ul><li>Unit Trust/Mutual Fund </li></ul><ul><li>OEIC (Open-Ended Investment Company </li></u...
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Investment Experiences In Tropical Forestry: Opportunites and Constraints

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Rico Dent, Senior Consultant - Inter-Alliance International - Malaysia.

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  • Investment Experiences In Tropical Forestry: Opportunites and Constraints

    1. 1. INVESTMENTS EXPERIENCES IN TROPICAL FORESTRY: OPPORTUNITIES AND CONSTRAINTS Presented by: Rico Dent, Inter-Alliance International Michael V. Galante, Global Forestry Services
    2. 2. Presentation Outline <ul><li>We intend to answer two fundamental questions related to investments in forestry; namely: </li></ul><ul><li>Q1-What is SFM and how does good forest management mitigate investment risk? </li></ul><ul><li>Q2-What are the potential revenue streams from investments in SFM and what is the best investment vehicle to attract retail and/or institutional investors? </li></ul>
    3. 3. Sustainable Forest Management <ul><li>What is Sustainable Forest Management (SFM)? </li></ul><ul><li>The stewardship and use of forests in which to maintain their ecosystem function (including ecosystem services-air, water & biodiversity) and productivity for use today and tomorrows generation. </li></ul>
    4. 4. Sustainable Forest Management <ul><li>There are three Pillars to Sustainable Forest Management: </li></ul><ul><li>Environmental Sustainability; </li></ul><ul><li>Sociological Sustainability; </li></ul><ul><li>Financial Stability. </li></ul>
    5. 5. Sustainable Forest Management <ul><li>Can Good Forest Management Mitigate Investment Risk? </li></ul><ul><li>Proper management planning includes: </li></ul><ul><ul><li>Roads & infrastructure; </li></ul></ul><ul><ul><li>Environmental Attributes & Conservation Areas; </li></ul></ul><ul><ul><li>Social issues; </li></ul></ul><ul><ul><li>Harvest plans, trails & schedules; </li></ul></ul><ul><ul><li>Planned rate of extraction and sustained yield. </li></ul></ul><ul><li>Good Forest Management works with indigenous communities and includes them into operations; </li></ul><ul><li>There is a transfer of knowledge to these communities which brings them into the management of operations. </li></ul>
    6. 6. Sustainable Forest Management cont <ul><li>Can Good Forest Management Mitigate Investment Risk? </li></ul><ul><li>Objectively analyzes and quantifies operations to determine the best plan of action; </li></ul><ul><li>Reduces potential risk areas in the operations; </li></ul><ul><li>Mitigates risk of fire; </li></ul><ul><li>Mitigates risk of pest/disease; </li></ul><ul><li>Forest Certification is an essential part of SFM; </li></ul><ul><li>Certification looks at the operations in its entirety which mitigates risk of failure. </li></ul>
    7. 7. Investment Trends in Forestry <ul><li>Rico add here </li></ul><ul><li>I recommend the following titles for the next slides </li></ul><ul><li>Investment Trends to Forestry </li></ul><ul><ul><li>current investment trends in natural resource </li></ul></ul><ul><li>Investment vehicles and models </li></ul><ul><ul><li>What are they, how they work </li></ul></ul><ul><ul><li>Funds, Bonds, Loans, others?? </li></ul></ul><ul><li>Who is Investing in Forestry? </li></ul><ul><ul><li>i.e retail & institutional </li></ul></ul><ul><ul><li>John Hancock, Investment Funds, HSBC, etc… </li></ul></ul><ul><li>A Way Forward </li></ul><ul><ul><li>Future considerations </li></ul></ul><ul><ul><li>Where, when, how to start? </li></ul></ul>
    8. 8. Potential Revenue Streams from Forestry <ul><li>Clean Air through plant respiration (Carbon Sequestration); </li></ul><ul><li>Clean Water through the natural watershed capacities of forests; </li></ul><ul><li>Biodiversity services to support diverse plant, animal and microorganism populations of economic, subsistence or cultural value </li></ul><ul><li>Ecotourism </li></ul><ul><li>Renewal Harvesting of Forestry Products </li></ul>
    9. 9. Potential Revenue Streams from Forestry <ul><li>Other reasons to invest in sustainable forestry practices: </li></ul><ul><li>Corporate Social Responsibility (CSR) is now becoming a main concern with major investors worldwide; </li></ul><ul><li>“ Green” Marketing is becoming increasingly important for most businesses; </li></ul><ul><li>Climate Change mitigation is a natural process of trees and forests which can reduce your company’s “carbon footprint”. </li></ul>
    10. 10. Suitable Investment Vehicles <ul><li>Unit Trust/Mutual Fund </li></ul><ul><li>OEIC (Open-Ended Investment Company </li></ul><ul><li>These 2 Investment Structures allow institutions and individuals to invest in the forestry sector whilst also allowing them a suitable exit strategy </li></ul><ul><li>It will allow Forestry Projects access to alternative sources of funding </li></ul>

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