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)