Forestry investment is a simple concept, yet it requires a skilled and experienced manager to maximise investor returns. Forest Enterprises is unique in combining investment administration with forest management, creating synergies across our business that benefit the investments’ bottom line. Our investors also benefit from the trusted business relationships and scale we have developed over fifty years as a leading provider of forestry investment.

Your investment manager

A deep-rooted, investor-focused ethos has always set Forest Enterprises investments apart from all other forestry investments. Standing in the shoes of the investor is the number one guiding principle which dominates and directs all aspects of our business.

New Zealand’s new financial markets regime requires a manager of Managed Investment Schemes (MIS, such as our Limited Partnerships) to be licensed. 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 met (and are required to continue to meet) high minimum standards of governance and operational and financial management, and have provided evidence to New Zealand’s financial markets regulator of robust systems and processes for managing our MIS Limited Partnerships, and for keeping investors fully informed and engaged with their investment. Forest Enterprises Limited is required to comply with New Zealand’s financial markets regulations governing the conduct and activity of a licensed MIS manager, which includes routine audits by the Financial Markets Authority.

The process of becoming a licensed MIS manager validated many of the systems and processes we already had in place that were aligned with our ethos of standing in the shoes of the investor. Minimising the impact on our investors from complying with regulations is an extension of this philosophy and is core to maximising the return to investors.

Go to our Legal page for more information about our status as a licensed MIS manager. Read our 2016 press release about becoming licensed.

Our role as your investment manager is to provide day to day administration of your investment:

  • Ensure your investment is protected
  • Co-ordinate key elements of the investor protection regime such as independent financial and forest audits, regular reporting, and forest visits and meetings
  • Ensure your compliance obligations are met regarding GST, income tax and other regulatory reporting
  • Maintain full accounting and administration records
  • Facilitate the sale and purchase or transfer of shares
  • Ensure you are kept fully informed on all matters
Because we believe in transparency, we go above and beyond in our approach to communicating with investors, keeping them informed about everything relating to their forest investment and us as their appointed manager. All reports and investor communications are sent to the Supervisor and the Chair of Board of Forest Enterprises Limited (the Manager).

Our investors receive detailed annual investment reports. The Annual Report for each of our Limited Partnership Managed Investment Schemes contains details on the affairs of the scheme as prescribed by the Financial Markets Regulations 2014. These include a summary of any changes to the Scheme, the financial condition and performance of the Scheme, and the Manager’s fees.

The annual Financial Report for each of our Limited Partnership Managed Investment Schemes contains a full set of accounting reports, including analysis of the last year’s expenditure to budget, sets out the expenditure for the coming year, and provides an investment update with indicative valuation. The Financial Report also includes a report from Forest Enterprises as Manager, and the respective audit reports from the Financial and the Forest Auditors.

Annual Reports are sent to investors four months after balance date together with investment’s Financial Report. These reports can be read and downloaded from the Companies Office Disclose Register (search by Scheme Name).

We also publish comprehensive progress reports at key points in the life of each investment setting out the bigger picture of the forest’s development to date, updated future projections, and any special events or circumstances that may impact on the performance of a forest investment.

Investors whose forests are being harvested are provided with regular Harvest Reports to show the progress made throughout the harvest programme towards realising the value of the forest investment. This suite of reports provide analysis and commentary about the logging activity underway, the logging outcome such as log grades, prices and sales, and a summary of harvest related costs. Also included is Forest Enterprises’ periodic Log Market Analysis, tracking log price per grade, market forces impacting log price and Index Log Price.

Regular Communication
We communicate regularly with investors. Client Updates are communications specific to an investment or an important investment related matter on which all investors should be informed. Our biannual Investor Updates provide investors national and international forestry sector information of a general nature, and keep investors informed about us as their Manager. For those wishing to increase their forestry investment portfolio, we notify them of Investment Opportunities as they arise.

Because many forestry expenses are deductible, a forestry investor can benefit from being able to claim tax losses against their total income. This means that for most years during the term of your forestry investment before harvest, you will be entitled to a share of the investment’s tax losses. For forests that are harvesting, or sell or lease carbon credits, there may also be some tax payable on your share of the income earned.

By early June each year, we send all investors a Tax Details Statement detailing the tax payable (or loss) for the tax year ended 31 March. In addition, the annual Financial Statements contain reference to the tax payable (or loss) for that investment. You can read and download the latest annual Financial Statements for our MIS Limited Partnerships on the Companies Office Disclose Register (search by Scheme Name).

The investor has the responsibility for managing their tax obligations, and we recommend investors seek advice from a tax advisor about their specific circumstances.

We coordinate formal and informal investor meetings and other processes that enable investors to make key decisions about their investment.

We manage the compliance programme required to ensure the Managed Investment Schemes comply with their governing laws and regulations.

We liaise with the Supervisor and Financial Auditor to enable each to fulfil their obligations to you.

We are responsible for the day-to-day administration of the investment including payments, bank reconciliations, plus debtor and creditor activity.

We maintain full accounting records for the investment and prepare, publish and distribute a comprehensive set of accounts as part of a detailed Annual Report and Financial Statements, and keep all historical accounting and other records required by law.

We attend to and complete all GST, Income Tax, Statistical and other regulatory reporting and liaison functions for the investments.

We maintain the investor share register with full contact details for each investor plus the investments they own.

We provide tax information specific to each investor annually to enable them to complete their tax return in order to claim any tax losses available and also to account for the harvest revenue in the latter years.

We distribute notices for and collect the funding Calls required from investors including following up slow and late payers to ensure payment.

We respond to all investor queries, and at key times during the investment arrange forest visits and informal investor meetings.

We complete an annual investment update and indicative valuation for inclusion in the Financial Statements, and as input into the annual insurance valuation and the Investment Reports produced for the sale of established forests.

As necessary we report to all investors and comment on topical issues and other matters of interest.

We enable investors to liquidate their investment prior to harvest by facilitating the opportunity for both new and existing investors to purchase shares in established forests.

We process transfers of investment when received direct or as a result of a sale and purchase of shares in an established forest.

We monitor central and local government activity and respond/react as required on behalf of our investors to developments that may impact upon their investment.

We monitor professional organisations that provide services relevant to our investors and respond to developments within these bodies that may impact upon their investment.

We represent our Investors on relevant industry bodies such as the New Zealand Forest Owners Association.

Your forest manager

The forest is the engine room of the investment where skilled professional management is vital to maximising investors’ returns. Conceptually, growing a forest is a simple undertaking, purchase a block of land, plant the trees and some years later harvest them. The reality in modern plantation forestry management is quite different. At the end of the day it is the quality of the forest management that determines the amount of money in investors’ pockets.

We are responsible for your forest. We hire experienced, passionate foresters who are committed to continued professional development, using the latest technology and team work. And we only work with reputable contractors.

The growth of a forestry investment is largely biological growth of the tree crop, so silviculture activity is a key driver of the ultimate volume and log grades at harvest. Not only do we conduct annual financial audits, but we also conduct forestry audits that provide quality control over forest operations like the silviculture programme and vital forest data.

We manage harvest operations using safe, environmentally responsible and productive contractors to maximise returns at harvest. Forest Enterprises Gisborne Regional Manager led the development of Good Practise Guidelines for Catchment Management to improve the environmental outcomes of plantation forestry in the Gisborne Tairawhiti and Wairoa regions. This guide is based on the catchment management strategies we’ve had operating in Forest Enterprises’ Gisborne forests since 2017.

Our role as your forest manager is to ensure forest activity is undertaken to the highest standards:

  • Be responsible for Health & Safety and resource management issues
  • Coordinate and supervise all field work such as roading, pest control and silviculture
  • Coordinate and manage the harvest
  • Adhere to the high standards set by the Forest Stewardship Council certification we hold for responsible forest management
  • Maintain extensive database of field activity and forest data for financial modelling and valuation, as well as accurate digital maps
  • Engage reputable forestry contractors
  • Liaise with independent forest auditor
  • Maintain positive relationships with stakeholders such as neighbouring landowners, local and central government, and members of the public
  • Represent investors on relevant industry bodies

The quality standards set for our investment business are mirrored by our forestry business. This is evident in the professional credentials of our forestry team, and their application of technology and critical decision-making. Beyond their years of experience in the forestry sector – and qualifications in economics, forestry and science – our team wields a wide range of skills, from financial modelling, computer coding, GIS analysis and drone operation, to all-important contractor relationship management.

Meet the team.

Registered Forestry Consultants
Forest Enterprises is unique amongst direct forestry investment companies in having two New Zealand Institute of Forestry (NZIF) Registered Forestry Consultants as directors – CEO & Forestry Director, Bert Hughes and Southern North Island Regional Manager Malte Coulmann. Technical Services Manager Steve Croskery and our forest auditor Kevin Reardon of Forme Consulting Group, are also NZIF Registered Forestry Consultants.

The NZIF is a national organisation of people involved in all aspects of the discipline of forestry. The Institute’s objectives include being an independent advocate for forestry and serving its members by providing recognition of professional standards. NZIF’s Registered Forestry Consultant scheme aims to raise and maintain the standards of professional forestry in New Zealand. An individual who becomes a Registered Forestry Consultant has been judged to have professional knowledge and skills, high standards of professional conduct, and commitment to ongoing learning. Moreover, Registered Forestry Consultants are required to apply each year for an Annual Practicing Certificate.

Our size results in significant economies of scale. We leverage our size and the common interests of all the investments we manage to maximise the return to investors as forest owners.

As our harvest volume grows in coming years, we will continue to create significant economies of scale. Forest Enterprises has leveraged the combined wood flow of all our harvesting forests to lease log storage space at the Waingawa Rail Yard and at CentrePort, helping to secure the infrastructure needed to support the supply chain. The lease arrangements provide for additional margin on log price which is advantageous to forest owners at harvest. Read more about the log hub.

As a manager of large harvest volumes we can negotiate favourable terms for log supply. Our scale enables us to have an ongoing export arrangements with two of the largest international log buyers operating in New Zealand – TPT Forests for our Wairarapa operation and PFP for our Gisborne operations. We are the major customer for the domestic mills we supply in the Southern North Island region. Kiwi Lumber Masterton is one of two significant mills in the Wairarapa and Forest Enterprises is their largest supplier. We supply around a third of the lumber processed by Kiwi Lumber Dannevirke, and we now also supply Kiwi Lumber in Gisborne.

Our size means we can maintain professional levels of supervision, support equipment and personnel, both in the field and the office. We can offer continuity of work all year round and therefore attract experienced reputable contractors. Such long-term business arrangements with contractors means they can commit to capital expenditure and train and retain the best staff.

We are responsible for your forest and therefore visit the forest regularly to check on the status of the tree crop, maintain security and avoid unauthorised access, ensure that all access tracks and culverts are clear, check and remove any wandering stock etc.

We act as the contact point and the liaison party with neighbours, District and Regional Council officers, Ministry for Primary Industries’ officers, Fire & Emergency New Zealand and the many other third parties both official and casual who have an interest in your forest.

We are responsible for all Health and Safety and Environmental Management activities relating to your forest.

We also assist in training and safety programs for the field staff to ensure they are fully skilled and suitable for the work.

We maintain an extensive paper and digital database containing records of all field operations undertaken in your forest, together with plot data collected during each operation, as qualitative evidence in respect of the development of the forest, for programming future operations within the forest, for modelling for insurance plus general valuation purposes and ultimately for harvest planning and marketing purposes.

We keep up to date and accurate digital maps of your forest to aid forest management and supervision plus provide stand areas for input into all valuation and modelling projections.

At the appropriate times in the life of your forest we undertake detailed inventory work to obtain a current profile to re-calibrate the projection and analysis models used for insurance and other valuation purposes and in later years for harvest planning.

Each year we update the valuation of your forest for insurance purposes based upon the investment update and valuation work completed for your Annual Report and negotiate the best insurance arrangements for your forest.

We liaise and cooperate with other forest owners in each district and the relevant authorities to provide a coordinated and skilled fire fighting capability. This includes contributing, or having available at a central point, fire-fighting equipment. In addition, we also have staff on stand-by 24/7 during the dry months.

We liaise with the Forest Auditor to assist them to complete their annual independent review of your forest.

We arrange independent forest health inspections and assist as required with the inspections and the subsequent follow up remedial action.

We negotiate and manage grazing leases during the years that grazing is possible and desirable under the growing trees.

Towards the maturity of your forest we undertake detailed harvest planning work and prepare the information necessary to commence the marketing of the logs that will be harvested.

We co-ordinate and manage the harvest of your forest and all the associated supervision, reporting and payment consequences.

We are responsible for coordinating and supervising all fieldwork in your forest from establishment to harvest. This includes the initial establishment of your forest right through the planting, pruning, and thinning activities.

We undertake all reporting and accounting obligations where relevant regarding the Emissions Trading Scheme and/or carbon leases, including buying/selling New Zealand Units (NZUs).

In addition, we co-ordinate and supervise track and culvert installation and ongoing clearance and maintenance, regular noxious and other weed spraying, fencing repairs and maintenance plus noxious and other pest control work.

The role of other professionals

The Supervisor is a central component of investing in New Zealand and its role is mandated by the Financial Markets Conduct Act 2013. The role of the Supervisor is to:

  • oversee and supervise the investment
  • hold title to the land in trust for the investors
  • hold all investors’ money until required for authorised expenditure
  • act as attorney for investors in order to attend to the procedural and statutory aspects of the investment

The Supervisor of Forest Enterprises’ investments is Trustees Executors Limited. It is a leading New Zealand trustee company, formed over 120 years ago and the first trustee company in New Zealand. Trustees Executors has been the Trustee and Supervisor for Forest Enterprises’ investors since we reformed our investments in the 1990s.

Learn more about Trustees Executors Ltd here.

Trustees Executors

Each year, for each forest, an independent financial audit is undertaken by accounting firm Grant Thornton New Zealand.

Grant Thornton New Zealand’s audit services go beyond signing off historical information; their approach is not typical of firms that only look in the rear-view mirror to see what happened last year. Grant Thornton takes a deep dive into the commercial issues that flow from the audit and the business risks that are of real importance to its clients. Businesses are supported to succeed and grow with value-adding audit reports that include robust independent opinions and actionable insights.

For more information about Grant Thornton New Zealand, visit their website.

Grant Thornton New Zealand

The performance of the investment is dependent in large part on the performance of the treecrop. The role of the forest auditor is to provide independent oversight and reporting on the status of the treecrop to the Forest Enterprises Limited board, the Supervisor and investors.

Each year, Forme Consulting Group Ltd undertakes a forest audit by physically inspecting the treecrop and confirm that the silviculture program is on target, completed to industry standard, and the current status of the forest in all other respects is as reported by the Manager.

Forme Consulting is one of New Zealand’s leading fully independent forest industry consulting firms. Forme uses the most up to date forestry planning and analytical software and provides a wide range of technical forestry services. Forme staff are all forestry professionals and undergo extensive continuing professional development. All their consultants are New Zealand Institute of Forestry Registered Forestry Consultants. The company is a member of all major forest industry associations including appropriate forest research co-operatives.

Learn more about Forme Consulting on their website.

Forme Consulting Group

Additional information for investors

Forestry investment by nature is a contributory investment, where an investor pays the funding required to meet the annual costs for forest management and other services, spread over one or two instalments each year. These are called Calls.

Future Calls
Calls are based upon the actual expenditure budgeted to occur in your forest each year. When you invested, the call payment dates and projected call amounts would have been set out in the documentation received (Investment Report or Product Disclosure Statement), but these are updated during the course of the investment. Your annual Financial Statements set out the budget for the current year and the actual calls payable to meet the budgeted expenditure. The Financial Statements also sets the first call for the next financial year. Calls are usually requested once or twice a year on 28 February, 30 June and/or 31 October.

Details of the Calls set for your forest investment are included in the annual Financial Statements for our Limited Partnership Managed Investment Schemes. These are available to read or download from the Companies Office Disclose Register (search by Scheme Name), or alternatively contact us to request a copy of your latest Annual Investment Reports.

Payment Options
We will send you a Call notice for each instalment at the beginning of the month it is due. Payment by direct debit is the easiest option for investors, however payment may also be made by VISA or MasterCard, or by transfer from an your bank account into the bank account of Trustees Executors Ltd (the investment Supervisor). Learn why we do not offer a lump-sum full payment option on our FAQ page.

We do not send receipts for Calls, so if your payment has been received, you will not hear from us. However, if we do not receive your Call payment, we will send you a reminder notice.

Forest Enterprises coordinates a bulk forest insurance policy on behalf of our investors, taking advantage of an economy of scale for the benefit of both our group investment and private clients. Our insurance provider is Insurance Facilitators Pty Ltd, an Australian based specialist forestry and crop insurance provider. The annual period of cover runs from 1 September to 31 August.

Contact Customer Services Manager Sean Roberts should you have any questions about the insurance cover, and for a summary of the policy.

Forest visits and informal meetings are held approximately every five years to enable investors to view their growing forest and to meet the Forest Enterprises management team. It is also a great opportunity to meet fellow investors. With more investments approaching harvest, pre-harvest forest visits are an all-important part of our communication with investors about the complexities and opportunities presented by the proposed harvest plan.

The program usually begins with the forest visit in the morning, followed by lunch and an informal meeting back in town where you have the opportunity to ask questions. Meetings to discuss the upcoming harvest tend to involve a more formal presentation by Forest Enterprises. We have filmed recent presentations and made them available online to ensure investors who were not present are not disadvantaged.

We give plenty of notice for these visits and meetings so that you have time to plan around the date, which is usually in March or November.

If you wish to visit your forest at other times, please contact us. Access is at our discretion as forest manager, and strictly by permit only for safety and security reasons. Depending on the forestry activity underway in your forest, access may not be possible.

Investor circumstances invariably change over the course of a long-term investment like forestry, and the option to sell or transfer their shareholding, should they need to, is important to our clients.

Should you wish to sell your Forest Enterprises forestry investment you have the choice of doing so privately or via Forest Enterprises. We facilitate the sale and purchase of existing forest investments through a willing buyer-willing seller open tender process. We also facilitate share transfers, such as between family members, trusts and trustees, or from an estate.

To talk through these options and your requirements, contact Customer Services Manager Sean Roberts.

Contact Sean

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Our Customer Services Manager Sean Roberts is on hand to answer any query from new and existing clients.
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