Group Companies

All of the Craigmore Fund entities are Dutch public limited liability corporations (Naamloze vennootschap or NV), based in Amsterdam, The Netherlands.

Craigmore Forestry NV focuses on forestry for both carbon sequestration and for lumber.
Craigmore Credit NV is invested in bonds and in third party funds that own bonds.

Target Returns

The Craigmore funds are managed to generate returns for investors, after fees, of between 8% and 20% per year, with a target minimum average return of 12% compound over five years.

These returns are high but reflect favourable investment conditions in asset markets following the recent crisis. They also reflect the attractive economics of Craigmore's first major project: carbon forestry.

Carbon forestry enables the investor to enhance the low but inflation-proof and steady returns of timber forestry (typically 6% to 10%) with the additional returns from the creation of carbon pollution off-sets. These additional returns are sufficient to lift Craigmore Forestry Fund’s projected annual returns significantly above our target annual return of 12% per annum, net of all fees.

Liquidity

The Credit Fund is the more liquid of the Funds. Investors can redeem their investments upon giving three month's notice to the Fund.

The Forestry Fund is less liquid. Investors are “locked in” for three years after investing. After this time they can give notice to redeem semi-annually, at which time the Fund will have a duty to sell down the investments and return cash as soon as is reasonably possible.

Risks and Risk Management

The tumultuous international (and domestic) politics of the global warming response means carbon markets are likely to continue to be volatile.

Given this, Craigmore is managing the portfolio to protect investor capital even if carbon markets were to fail. i.e. even in the extreme event carbon prices fade to zero, the principal value of investors capital should still be maintained. No doubt, in this event, Fund annual returns would decline (from perhaps 12.5% with carbon markets at present levels, to more like 7.5% from timber returns alone). Fortunately, since trees grow each year and create value, the principal value of investors' capital should continue to grow (if more slowly) even without the support of carbon.

It is also true that the fund has significant upside exposure to carbon. Annual returns could leap to perhaps 20% per year) if carbon markets return to the levels of two years ago.