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 credit and 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 5% to 7%) 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 two 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

Even though the prospects for carbon trading are positive (a number of new compliance regimes are being negotiated and carbon forestry is one of the most cost-effective ways to create carbon pollution off-sets) prices of carbon off-sets are exposed to the risk of changes in the various compliance regimes. These changes come in response to the tumultuous international (and domestic) politics of the new industry: itself a function of societies' comlex and fitful responses to the challenges of climate change. Because of its exposure to this volatility, Craigmore Forestry uses low levels of financial leverage. In addition the exposures of Craigmore Forestry are managed so that carbon price risk and the lumber value of forests should evolve in such a way as to protect investor capital even in periods of high volatility.