View more on these topics

MiltonOptimal sees the wood for the trees

MitonOptimal has embraced the environmentally friendly theme by investing in a socially responsible teak plantation fund.

The company’s multi-asset fund of funds, Arcturus, is holding Quadris environmental investments, a fund that invests in teak plantations managed by a Brazilian company.

MitonOptimal says the price of hardwoods such as teak has outperformed inflation during the past 100 years. Demand for teak has risen in line with world population growth, which has led to a shortage of supply. This supply problem is a long-term concern as it takes about 25 years for teak trees to grow, so MitonOptimal expects the price of teak to further appreciate.

The teak plantations in which Quadris invests are managed in a sustainable way, with new trees being planted across 3,000 hectares of land each year.

MitonOptimal fund manager Tom McGrath says: “With oil and gold you do not know how much there is in the world and you do not know when someone will find a new source. But we know how much teak there is as satellites can track the amount. Over time you have more teak and the older it gets the more valuable it is.

“The Quadris fund has a long-term track record and it is not stripping Brazilian rain forest. Trees are replanted and Quadris works within the local community.'”For us, it is a good investment – the price of teak is going up on value and it is not correlated to equities.”

Recommended

Johnson remains as CEO, says Pos Sol

Positive Solutions chief executive Neil Johnson will remain at the firm despite being made a partner of executive chairman David Harrison’s new spin-off True Potential.PS marketing manager Daniel Harrison, who will be leaving to become head of marketing and will be made a senior partner, has confirmed Johnson will stay at PS for the remainder […]

Consumers don’t trust the big banks

Barclays is the least trusted of the big five high-street banks according to research from independent personal finance website fool.co.uk.

UPA launches new website

The United Packagers Association has announced the launch of a new website for intermediaries.The website includes information on how to become a member together with marketing support which smaller packagers can use.The UPA is part of The Mortgage Times Group and appeals to smaller packagers in the market and aims to assist these firms in […]

Canada Class act for online cover

Canada Life’s internet-based e-business portal Class now allows advisers to complete the on-risk process online with the system confirming that cover is in place.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment