Shareholders in Irish Forestry Funds (IFF) have seen their investment wither on the vine. Top from left: IFF Managing Director Trevor McHugh, Marketing Director Paul Brosnan and Chairman Richard Hoare in 2010

This morning.

Via The Irish Times:

To the surprise of many of the 12,400 shareholders who pitched in over the years, IFF has just sold its portfolio of 18 funds to Axa Investment Managers.

Shareholders, who thought they were locked in for years still to come, weren’t consulted ahead of the sale, which was decided by [Paul]  Brosnan and IFF co-director Trevor McHugh. The directors say the decision was legally mandated to them.

IFF investors’ cheques arrived in the post on Wednesday morning, and, judging from correspondence to this newspaper and on online forums, many are furious with the outcome.

The Axa deal has resulted in annual returns of between 2 and 3 per cent in most cases. That’s a far cry from the huge “illustrative returns” in the marketing bumf.

Investors in Irish forestry learn money doesn’t grow on trees (Cantillion, Irish Times)

Investors’ fury as forestry fund sale ends hope of hitting return targets (Independent.ie)

14 thoughts on “Timber

    1. some old unicorn

      Unless I am mistaken- the chairman of IFF from 2010 onward is one Mr Bertie Ahern?

      Not sure if he is still in place- interesting that his name is not mentioned mind.

      Reply
      1. Otis Blue

        Think that was the International Forestry Fund rather than the Irish Forestry Fund. Still, the fact that the hoor would be involved in the sector should raise a red flag for everyone.

        Reply
        1. some old unicorn

          Contact details are the same email domain.

          You who slap yourselves on the back as being REAL journalists- why was my PDF link removed please? It was in the public domain after all.

          Reply
  1. Ger

    Another Example of the Irish Funds industry fee structures destroying Investor Returns . The real
    Scandal is the management fees levied by the pension fund industry which destroy pension value for hapless employees forced into company mandated retirement schemes. Whose fee loads are outrageous wiping out retirement benefits.

    A future scandal in the making!

    Reply
    1. phil

      While I mostly agree with you, I thought it was people who open their own pensions that were screwed with fees, company pension plans usually pay the fees for their employees , plus they usually match your contribution …

      Reply
  2. some old unicorn

    Question- what is the difference between the Irish Forestry Funds and the International Forestry Fund? The latter is or least had Bertie Ahern as chairman. If you look at the contact details of at the bottom of the link below- you will see an irish-forestry.ie email address as contact.

    http://hugin.info/142427/R/1357358/330158.pdf

    Reply
  3. eoin

    So, you put €100 into this scheme and you’re receiving €130 back in 2019 (1.03^9) while your neighbours in the credit union or bank will be doing well to get €105 (before tax). And now, you’ve gone to the Irish TImes to have a whinge? And the Irish Times is dutifully obliging?

    What was it someone said about the Irish Times the other day and losing touch.

    Reply
    1. eoin

      However, I have good news for the whingey babies. Here’s a wonderful new investment for you. Digicel 2023 bonds. Buy them today for 41c in the dollar. They’ll give you a yield of 42% a year for the next four years.

      These are the best Digicel bonds going and are tops of the capital stack.

      https://www.boerse-frankfurt.de/bond/USG27649AG04

      The only way you won’t make that return is, if Denis O’Brien defaults. And I have it on good authority that some banana republic in the northern hemisphere is about to give him a €5 (five) billion euro contract. You’ll be quids in.

      [warning: the value of investments can go up as well as down. Denis O’Brien is dodgy. But Richard Bruton is shady]

      Reply
    2. Rob_G

      Not sure you get the nature of this investment – if you put your money in the bank or credit union, you can take it out any time you want. In this instance, investors were agreeing not to touch their money for (AFAIK) 30 years; it’s not really the same thing…

      Reply
  4. Truth in the News

    It appears that money does not grow on trees after all, when will we have the Hemp
    Investment Scheme open for Investors:

    Reply

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