Ethical Times

tm

Winter newsletter 2012

this issue...
Costa Rica Diary
The UK team visits some of our plantations - see how we turn barren land into thriving forests

Costa Rica harvest report

In this issue the UK directors visit Costa Rica, tour our plantations and witness the harvesting of mature Melina trees. Inside you can see this harvest and an actual-size cross section of one of these remarkably fast growing trees.

Harvesting mature Melina

As part of our ongoing research and development, we harvest mature Melina trees on our Brasilia Plantation

Remarkable Growth
See the actual size of a cross section of Mature Melina and count the rings!

How our investments work

See how a plot of trees grow and their projected returns

Our new 2012 Calender

Calendar 2012

You can also see snap shots of our plantations and thriving forests. There is also a map of our Cocobolo plantation, highlighting the land we allocate to our Forestry Easement Trust, why this is important, and some of the animals we saw during our recent visit in November.

Visitors to the The Property Investor Show at Londons stand. We will be making more appearances in 2012 at many more shows and hope to see you there.

This years calendar promises to be as read how we turn barren, cattle grazing land into new Excel Centre in October, will have spotted our exhibition popular as lasts years and you can now send to a friend

Are you Sleepwalking into Retirement?

In the UK, we are pleased to announce that we have moved offices to facilitate our ever growing team. Shocking statistics regarding pension We are still based in Bournemouth, Dorset and welcome provisions that cant be ignored any visitors, at any time. Our new address is on the bottom of this newsletter.

As our popularity within the press continues to thrive, inside are few of the latest quotes from publications such as The Guardian, The Telegraph and The Independent. On the back page we highlight some alarming articles recently released in the press entitled Sleep Walking Into Retirement . The feature quotes various publications highlighting the merits and pitfalls of planning ones financial future.

Meet an investor...
an inheritance with Ethical Forestry

We are pleased to announce the release of our new

2012 calendar, which is being sent to every investor. Shoshona explains how she is growing

Due to popular request, we have also added another Investor Story kindly written by Shoshona who recently Full of wonderful images and facts, it promises to be as invested with us. If you have any questions or suggestions successful as last years. You can also request a copy to be for the next newsletter, we would like to hear from you so sent to a friend, colleague or family member; see inside please contact our office. Thank you. for details.

Ethical Forestry Ltd, 80 Holdenhurst Road, Bournemouth, Dorset, BH8 8AQ telephone 0800 075 30 10 email enquiries@ethicalforestry.com

Costa Rica Diary

Directors Matthew Pickard, Paul Laver and Steve Greenaway visit Costa Rica to review our plantations.
How we create thriving new forests.
In the mid 1950s, the Costa Rican Government awarded grants to farmers to fell the forests on their land to create cattle grazing pastures. The goal of this incentive was to increase the economic growth of the country by selling the valuable timber and by creating cattle ranches. Arguably beneficial at the time of implementation, this inevitably led to deforestation on a large scale and contributed to greenhouse gases commonly associated with cattle farms. Costa Rica has thankfully adapted their strategy, now focusing on the protection of rain forests and the development of sustainable forestry plantations. As a large percentage of the countrys GDP* comes from tourism (primarily created by visitors from the USA), it makes sense to further develop the tourism industry and the wonderful attractions the country boasts. As you will know from our brochure, 25% of the country is currently protected national parks - the largest percentage per country of protected area in the world.

By purchasing land previously deforested for cattle grazing, we are creating thriving forests, bustling with wildlife and f lora.
The land we purchase for our new plantations has been previously used for cattle grazing. When we purchase a piece of land, our team of forestry engineers clears the ground, preparing it for planting. We then plant thousands of new trees, creating thriving tree farms.

* GDP; Gross domestic product refers to the market value of all final goods and services produced within a country in a given period.

The team dis growth rates of Melina and Acacia trees in C ocobolo

Our Forestry Easement Trust

Protecting land & wildlife within our plantations
The map above shows the layout of our Cocobolo plantation in the Alajuela Province of Costa Rica. This extensive plantation has multiple species planted within it, such as Acacia and Melina. The land marked in dark green is land within our Forestry Easement Trust, which accounts for approximately 20% of the total land area of the plantation. For every plantation we buy, we aim to place 20-25% of the land immediately within this trust and all of the remaining land after all of our investors trees have been harvested. Within Cocobolo is a wide variety of rare trees, animals and flora, all protected under the watchful eye of our dwelling caretakers. With investors, we are continuing to build our trust, helping to create a better

The Final Harvest...

During the latest trip to Costa Rica, we harvested some mature Melina trees as part of our research and development programme.
Below we report on the impressive growth of this incredibly fast growing species and share our experience.
The following images show the harvesting of one of our 12/13 year old Melina trees during our trip to Costa Rica in November 2011. At the bottom of this page, you can see the life size cross section of the tree from the centre to the edge and the remarkable measurements. The trees harvested measured approximately 100 feet in height and had an average base diameter of around 23 inches / 58.4cm. As you will notice from the image below, Angie Fernndez Ziga, our head forestry engineer, only measures the usable inner wood and excludes the bark, thus demonstrating the 21 inches / 53cm of usable core timber. The trees felled had reached maturity and required felling for our ongoing growth statistic evaluation data and to make way for new trees to be planted. The collective trees growth data was consistent with our projections and further endorses the projections we give to our investors. As with all of our sustainable plantation procedures, the harvesting and replanting is a fundamental process. Experiencing the felling of these majestic trees is certainly an emotive experience. The tremendous crash the trees make and the vibrations that resonate through the ground is remarkable. Robert Brown informed me that the trees are usually cut into equal lengths to maximise the value in each tree. However, during the felling and cutting shown here, we purposefully cut off a 1.20 metre length and then sliced off three discs to bring back to the UK to show our investors, IFAs and agents. When you see these discs, it really demonstrates the size of these trees. People often count the rings and, as we know, a tree produces one definite ring per annum of which there are twelve;
1 Christian Chavarria Varela, Angie Fernndez Ziga and Jos Maria Alcocer Rodriguez survey a 12/13 year old Melina tree prior to felling. 2/3 Christian skilfully cuts the tree according to where he wants the tree to fall. 4 5 The base diameter of usable timber measures 21 inches / 53 cm. The tree is cut into 1.2 metre sections, which will be processed at our San Carlos timber mill. Christian skilfully slices off some Melina discs, one of which you can see below.

plus the bark which is the trees

mid 13th year of growth says Steven Greenaway, Director.

13th year of growth

Year 12 Year 11 Year 10 Year 9

Robert Brown and Peter Bowdler display the Melina discs from the harvest.

3 year

4 year
11.76m

5 year
14.48m

6 year
17.20m

7 year
19.92m

8 year
22.43m

9 year
24.16m

10 year
25.89m

12 year 11 year 27.62m

29.35m

Scale

Year 6 Year 5 Year 4

Year 7

Year 2

Year 1
actual size of log section

How our investments work

The growth rates and harvests for 600 Melina trees over 12 years
Year 1
600 trees are planted close together to encourage them to contend for canopy light making them grow tall and straight. If a tree persishes within the first three years we reallocate a replacement from our tree bank.

Year 4 - First Harvest

The average height of the trees is now 11.76 metres or 38.58 feet. Half of the trees are harvested leaving the strongest trees to carry on growing. The proceeds from the sale of the first 300 trees harvested is sent to the investor or their pension fund.

Year 8 - Second Harvest

105 trees are are harvested producing valuable timber. The total proceeds are then sent to the investor or their pension fund. 195 trees remain.

Year 10 - Third Harvest

The average tree height is now 25.89 metres or 84.94 feet. 68 trees are are harvested producing valuable timber. The total proceeds are then sent to the investor or their pension fund.

Year 12 - Final Harvest

The final 127 mature trees are harvested producing valuable timber. The total proceeds are then sent to the investor or their pension fund. After the final harvest the land is placed within our Forestry Easement Trust.

For more information on our ethical investments or to speak with an advisor, please call us free on 0800 075 30 10 or visit www.ethicalforestry.com

Property Investor Show See us in the press...

For visitors to the show at Londons Excel Centre in October, you will have spotted our exhibition stand.
If you are an avid reader of the tabloids, magazines and supplements, you may have spotted us recently in the press. As our investments become more and more popular, we are continually getting positive reviews such as the ones below. Visit the Reviews section of our website to see more.

you require an investment that offers good returns, stability If and security, then Ethical Forestrys timber investments deserve your consideration.
The Sunday Telegraph. October 2011

FRIENDLY INVESTMENT - Flexible and stable investment ECO that comes with a clear conscience.
The Guardian. October 2011

are discovering they can do well by doing good Investors by putting their money in forests.
The Independent. September 2011
Eco-friendly investment
Flexible and stable timber investment that comes with a clear conscience

rns, stability and security, then orestrys timber investments Ethical Fdeserve your consideration.

cap investors to benefit from this unique proposition. A strong, influential factor in deciding whether to invest in timber is the continuing rise in demand, which is projected to rise in line with the growth of the global population; as much as 55.88 per cent (UN) by 2050.

To help relieve this pressure on the natural supply chain, Ethical Forestry has created sustainable plantations, which offer an alternative, ecologically friendly supply source. Matthew P ickard, Ethical Forestrys MD says: Our plantations are run on a for profit basis, clearly focused on producing a good ROI for investors. Investor security is of paramount importance to us, for this reason we own all of our plantations outright and have our own onsite management teams caring for them on a daily basis. No third parties are involved with our operations that you cant keep your eye on. This way, we can ensure that all our trees are well maintained and protected, creating investor security thus making us unique within the market place.

over 12 years projects returns of 104,189. A investments typical forestry of 18,000 The payinvestment out in regular intervals, making them ideal for mid to long-term financial planning. Ethical Forestry also tailors investments to suit an individuals budget, making them flexible. Many investors are taking advantage of this opportunity for saving plans, family trust funds and personal pensions. The investments are HMRC

A strong, influential factor in deciding whether to invest in timber is the continuing rise in demand, which is projected to rise in line with the growth of the global population

The stand was a great success with new and existing investors as well as IFAs (Independent Financial Advisors) and agents. During the time at the show, we were asked many questions and asked a few questions back, as were always keen to get constructive feedback. We will be exhibiting at more shows this year with an updated stand that will include the discs of mature Melina shown in this newsletter. We hope to see you there.

compliant and SIP P approved, so your IFA can simply transfer an existing SIP P pension, or start a new one, making investing a simple process. Investing in forestry (and ultimately timber) for profit is not a new concept. Financial institutions, hedge fund managers and trusts have invested in timber for years and produced consistent long-term profits for themselves. They are popular with investors as they offer steady, stable increases with predictably high returns and, as they are not correlated to the stock market, they do not suffer from unpredictable peaks and troughs. Ethical Forestry has made this lucrative investment available to everyone, allowing small Developing countries such as China, India and Russia are unrelenting in their requirements for timber for construction and energy wood. This is driving illegal forestry operations worldwide to cope with the demand, all with devastating effect. Combine this new appetite for timber with the existing and projected global demand, and it is easy to understand why the rainforests continue to be felled at a rate of 13 million hectares per annum - the equivalent of one football pitch every second.

We know that investing for profit and having a clear conscience are important considerations for investors. For every plantation that Ethical Forestry buy, we also purchase existing wild forests and place them within our forestry easement trust. This easement trust preserves these valuable forests, forever protecting them and the wildlife within them that can be so easily lost. For more inf ormation about Ethical Forestry, call 0800 0753010 or v isit www.ethicalf orestry.com

The New 2012 Ethical Forestry Calender

Beautiful animals and insects from around the world
Our new 2012 calender is now available and being sent to all of our investors. The calendar is full of vibrant imagery encapsulating beautiful animals and insects from around the world. Notably, within this edition is the Tarsier, whose eyes are as big as its brain, the Chameleon, Preying Mantis and the majestic Jaguar.

January

February

March

April

May

June

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

1
Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday

1
Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday

10

11

12

13

14

15

10

11

12

10

11

10

11

12

13

14

15

10

11

12

13

10

17

18

19

20

21

22

13

14

15

16

17

18

19

12

13

14

15

16

17

18

16

17

18

19

20

21

22

14

15

16

17

18

19

20

11

12

13

14

15

16

17

24

25

26

27

28

29

20

21

22

23

24

25

26

19

20

21

22

23

24

25

23

24

25

26

27

28

29

21

22

23

24

25

26

27

18

19

20

21

22

23

24

31

27

28

29

26

27

28

29

30

31

30

28

29

30

31

25

26

27

28

29

30

ly

August

September

October

November

December

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

1
Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday

11

12

13

14

15

10

11

12

10

11

12

13

14

10

11

10

11

12

13

14

15

16

18

19

20

21

22

13

14

15

16

17

18

19

10

11

12

13

14

15

16

15

16

17

18

19

20

21

12

13

14

15

16

17

18

17

18

19

20

21

22

23

25

26

27

28

29

20

21

22

23

24

25

26

17

18

19

20

21

22

23

22

23

24

25

26

27

28

19

20

21

22

23

24

25

24

25

26

27

28

29

30

27

28

29

30

31

24

25

26

27

28

29

30

29

30

31

26

27

28

29

30

31

Send to a friend...
If you would like to send our 2012 calendar to a friend, colleague or family member, please supply us with the recipients name, address and a short message using the contact details below. We will arrange for a calendar to be sent to them with a personal note from yourself.

To order a calendar call 0800 075 30 10 or email us friend@ethicalforestry.com

For more information on our ethical investments or to speak with an advisor, please call us free on 0800 075 30 10 or visit www.ethicalforestry.com

Sleep walking into retirement

Shocking statistics released regarding retirement plans for women
Nearly half (46%) of women over the age of 40 who live with a partner have no pension of their own, according to new research into couples attitudes to retirement.
The extent of womens reliance on a partners pension and the State is not the only shock finding from the research, which also highlights that many UK couples could be sleep-walking into retirement poverty as they have no idea what pension income they will need to live on. More than half (56%) of couples aged over 40 have not worked out how much money they will need to live on in retirement, with two in five (40%) admitting to having no financial plans in place for life after work.British couples also seem reluctant to discuss with each other the finances that will support them in later life. One in five couples admit to never having discussed joint retirement financial planning, while only half of those who have already retired made a joint decision about the annuity they bought. The Mail Online reports, As well as women affected by divorce later in life, an increasing number of widows face being left without any income when their partners pension dies with him. When cashing in a pension pot, most people opt for an annuity, which pays a regular income for life. But the vast majority of men take out a single life annuity, which means that the money is paid only while they are alive. When they die, the annuity is halted, regardless of any surviving spouse. So women, who typically live longer than men, will be left with no income other than the state pension and see their quality of life collapse.

An Investors Story
I was looking for a long term investment that will create income for me, support the higher education of my daughter and help her to purchase her first house. When considering where to invest, I wanted something that would contribute to the world, as well as our financial security. After researching the few investments that offer both, I decided to contact Ethical Forestry. I discussed the various investment options offered and decided that the Accumulator option was best suited for my future financial plans. I also discussed the ecological ethos of the company and it soon became apparent that they offer renewable, sustainable investments that contribute to the bonding of the soil and oxygenating of the planet - which works for me as it is synergistic with my business ethos. The fact that the growth in value of the trees is exponential and unique - both increasing in value per unit over time, and increasing in units due to growth of the actual trees - appealed to me. It is reassuring to know that my investment will be well managed, easy to keep track of and not require time on a daily basis, like stocks.

If you would also like to appear in An Investors Story, please contact peter@ethicalforesty.com

Written by Shoshona from The Detox Centre

The 24 year investment is like growing an inheritance on trees

Ethical Forestry is not regulated by the Financial Services Authority and does not offer any advice about any regulated or unregulated investments, either within this advertisment or elsewhere. Please consult an Independent Financial Advisor prior to making any decision to buy our products. Our products are not regulated investments. Their value may rise or fall and no guarantees of future performance in respect of income or capital growth are given either expressly or by implication, and you may not get back the full amount you pay for them. Ethical Forestry shall not be held liable to anyone for any errors, omissions or inaccuracies within this advertisment under any circumstances or for any loss or damage which may arise from the use of any of the information or detail contained herein.