Investment

/Investment

Terms and queries about investing

Why invest in forestry with Forest Enterprises?

By | March 7th, 2016|

The choice of company you invest with is most important. You should be looking for a company with a proven track record of adding value for their investors. As the first direct forestry investment company established in New Zealand, our record of providing quality investments speaks for itself. You can find out more information about [...]

What does being a ‘licensed manager’ mean?

By | July 29th, 2016|

Under New Zealand law, issuers, managers and promoters of registered Managed Investment Schemes (MIS Schemes) must hold a license to do so. Forest Enterprises Limited is licensed under the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed funds) which are primarily invested in forestry assets. We have met (and are required to continue to [...]

When will my forest be harvested?

By | July 29th, 2016|

With many of our forest investments approaching harvesting age, this question is naturally on the minds of our investors because it is an indication of when to expect investment returns. Until a forest's indicative Harvest Plan is confirm with the investors, the harvest dates reported each year in the Investment's annual Financial Statements will reflect the harvest dates [...]

What is a Managed Investment Scheme (MIS)?

By | July 29th, 2016|

Of the 61 forestry investments managed by Forest Enterprises, 49 are Managed Investment Schemes (MIS), registered under the Financial Markets Conduct Act 2013 and regulated by the Financial Markets Authority. Forest Enterprises Limited is licensed under the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed funds) which are primarily invested in forestry [...]

Can I sell or transfer my shares prior to harvest?

By | July 29th, 2016|

Yes, you can do both. Being able to liquidate or transfer shares prior to harvest is a key feature of a Forest Enterprises investment. We have facilitated the sale of established Forest Enterprises investments for many years and never failed to find a buyer for an investment at a price acceptable to both buyer and seller. If you are considering [...]

What are my shares worth?

By | July 29th, 2016|

Each year when a forest investment's Annual Investment Reports are prepared (namely the Financial Statements), an update made to the investment's Indicative Value at balance date for a typical share unit of 200 shares. If you have shares in a Forest Enterprises Limited Partnership investment, you will find the updated Indicative Value usually on page 17 of the investment's annual Financial [...]

How will I be paid at harvest, and what about the tax?

By | March 7th, 2016|

Under current taxation law, the Limited Partnership, like an ordinary partnership, is not taxed at the partnership level. Instead, each partner is taxed individually, in proportion to his or her share of the partnership income. So a limited partner will pay tax on their share of harvest proceeds at their marginal tax rate.

What happens after the trees are harvested?

By | March 7th, 2016|

The areas harvested will be replanted the following winter. At the conclusion of harvest, most (if not all) of the land will have been replanted.  The original investors (or their family) will then have the choice of a) reinvesting using their share of the proceeds from the sale of the land and the replanted trees, [...]

Will there be a surplus of wood when my trees are harvested?

By | March 7th, 2016|

During the late 1970s and early 1980s, the annual planting rate in New Zealand was between 50,000 and 60,000 hectares, a level to which we only returned in 1993. As the total forest estate increases, production will also increase, however New Zealand’s contribution to the world market is very small and represents only a fraction [...]

Are the trees insured?

By | March 7th, 2016|

Yes! Your forest is insured against fire until harvest and also the negative effects of wind, including toppling and associated remedial work. Contact us for the current summary of the forest insurance cover.