Ethical Times

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Winter newsletter 2012

this issue...

Costa Rica Diary

The UK team visits some of our

plantations - see how we turn

barren land into thriving forests

Harvesting mature Melina

As part of our ongoing research and

development, we harvest mature

Melina trees on our Brasilia Plantation

Remarkable Growth

See the actual size of a cross section

of Mature Melina and count

the rings!

How our

investments work

See how a plot of trees grow and

their projected returns

Our new 2012 Calender

Costa Rica harvest report

In this issue the UK directors visit Costa Rica, tour our plantations and witness the

harvesting of mature Melina trees. Inside you can see this harvest and an actual-size

cross section of one of these remarkably fast growing trees.

Calendar 2012

This years calendar promises to be as

popular as lasts year‟s and you can

now „send to a friend‟

Are you Sleepwalking

into Retirement?

Shocking statistics regarding pension

provisions that can‟t be ignored

Meet an investor...

Shoshona explains how she is growing

an inheritance with Ethical Forestry

You can also see snap shots of our plantations and

read how we turn barren, cattle grazing land into new

thriving forests. There is also a map of our Cocobolo

plantation, highlighting the land we allocate to our

Forestry Easement Trust, why this is important, and

some of the animals we saw during our recent visit

in November.

In the UK, we are pleased to announce that we have

moved offices to facilitate our ever growing team.

We are still based in Bournemouth, Dorset and welcome

any visitors, at any time. Our new address is on the

bottom of this newsletter.

We are pleased to announce the release of our new

2012 calendar, which is being sent to every investor.

Full of wonderful images and facts, it promises to be as

successful as last year‟s. You can also request a copy to be

sent to a friend, colleague or family member; see inside

for details.

Visitors to the The Property Investor Show at London‟s

Excel Centre in October, will have spotted our exhibition

stand. We will be making more appearances in 2012 at

many more shows and hope to see you there.

As our popularity within the press continues to thrive,

inside are few of the latest quotes from publications such

as The Guardian, The Telegraph and The Independent.

On the back page we highlight some alarming articles

recently released in the press entitled „Sleep Walking

Into Retirement‟ . The feature quotes various publications

highlighting the merits and pitfalls of planning one‟s

financial future.

Due to popular request, we have also added another

Investor Story kindly written by Shoshona who recently

invested with us. If you have any questions or suggestions

for the next newsletter, we would like to hear from you so

please contact our office. Thank you.

Ethical Forestry Ltd, 80 Holdenhurst Road, Bournemouth, Dorset, BH8 8AQ telephone 0800 075 30 10 email enquiries@ethicalforestry.com

Costa Rica Diary

Directors Matthew Pickard, Paul Laver and Steve Greenaway visit

Costa Rica to review our plantations.

How we create thriving new forests.

In the mid 1950‟s, the Costa Rican Government awarded grants to farmers to

fell the forests on their land to create cattle grazing pastures. The goal of this

incentive was to increase the economic growth of the country by selling the

valuable timber and by creating cattle ranches. Arguably beneficial at the time

of implementation, this inevitably led to deforestation on a large scale and

contributed to greenhouse gases commonly associated with cattle farms.

Costa Rica has thankfully adapted their strategy, now focusing on the

protection of rain forests and the development of sustainable forestry

plantations. As a large percentage of the country‟s GDP* comes from tourism

(primarily created by visitors from the USA), it makes sense to further develop

the tourism industry and the wonderful attractions the country boasts. As you

will know from our brochure, 25% of the country is currently protected national

parks - the largest percentage per country of protected area in the world.

By purchasing land previously deforested for cattle grazing, we are creating thriving forests, bustling with wildlife and f lora. The land we purchase for our new plantations has been previously

used for cattle grazing. When we purchase a piece of land, our team

of forestry engineers clears the ground, preparing it for planting. We

then plant thousands of new trees,

creating thriving tree farms.

* GDP; Gross domestic product refers to the market value of all final goods and services produced within a country in a given period.

The team dis

growth rates of Melina and

Acacia trees in C ocobolo Our Forestry Easement Trust Protecting land & wildlife

within our plantations

The map above shows the layout of our Cocobolo plantation in the

Alajuela Province of Costa Rica.

This extensive plantation has multiple species planted within it, such

as Acacia and Melina. The land marked in dark green is land within our

Forestry Easement Trust, which accounts for approximately 20% of the

total land area of the plantation.

For every plantation we buy, we aim to place 20-25% of the land

immediately within this trust and all of the remaining land after all of our

investors‟ trees have been harvested.

Within Cocobolo is a wide variety of rare trees, animals and flora, all

protected under the watchful eye of our dwelling caretakers. With

investors, we are continuing to build our trust, helping to create a better

The Final Harvest...

During the latest trip to Costa Rica, we harvested some mature

Melina trees as part of our research and development programme. Below we report on the impressive growth of this incredibly fast growing

species and share our experience.

The following images show the harvesting of one of our 12/13 year old Melina

trees during our trip to Costa Rica in November 2011. At the bottom of this page,

you can see the life size cross section of the tree from the centre to the edge and

the remarkable measurements. The trees harvested measured approximately

100 feet in height and had an average base diameter of around 23 inches /

58.4cm. As you will notice from the image below, Angie Fernández Zúñiga, our

head forestry engineer, only measures the usable inner wood and excludes the

bark, thus demonstrating the 21 inches / 53cm of usable core timber.

The trees felled had reached maturity and required felling for our ongoing

growth statistic evaluation data and to make way for new trees to be planted.

The collective trees‟ growth data was consistent with our projections and further

endorses the projections we give to our investors. As with all of our sustainable

plantation procedures, the harvesting and replanting is a fundamental process.

“Experiencing the felling of these majestic trees is certainly an emotive

experience. The tremendous crash the trees make and the vibrations that

resonate through the ground is remarkable. Robert Brown informed me

that the trees are usually cut into equal lengths to maximise the value

in each tree. However, during the felling and cutting shown

here, we purposefully cut off a 1.20 metre length and then

„sliced off‟ three discs to bring back to the UK to show

our investors, IFA‟s and agents. When you see these

discs, it really demonstrates the size of these trees.

People often count the rings and, as we

know, a tree produces one definite ring

per annum of which there are twelve; 13th year plus the bark which is the tree‟s of growth mid 13th year of growth” says

Steven Greenaway, Director.

1 Christian Chavarria Varela, Angie Fernández Zúñiga and José Maria Alcocer

Rodriguez survey a 12/13 year old Melina tree prior to felling.

2/3 Christian skilfully cuts the tree according to where he wants the tree to fall.

4 The base diameter of usable timber measures 21 inches / 53 cm.

5 The tree is cut into 1.2 metre sections, which will be processed at our

San Carlos timber mill.

6 Christian skilfully slices off some Melina discs, one of which you can

see below.

Year 12

Year 11

Year 10

Year 9

Robert Brown and Peter Bowdler

display the Melina discs from the harvest.

3 year 4 year 5 year 6 year 7 year 8 year 9 year 10 year 11 year 12 year 11.76m 14.48m 17.20m 19.92m 22.43m 24.16m 25.89m 27.62m 29.35m

Scale

4

Year 6

Year 5

Year 4

Year 7

Year 2

Year 1

actual size of log section

How our investments work

The growth rates and harvests for 600 Melina trees over 12 years

Year 1

600 trees are planted close together

to encourage them to contend for

canopy light making them grow tall

and straight. If a tree persishes within

the first three years we reallocate a

replacement from our tree bank.

Year 4 - First Harvest

The average height of the trees is now

11.76 metres or 38.58 feet.

Half of the trees are harvested leaving

the strongest trees to carry on growing.

The proceeds from the sale of the first

300 trees harvested is sent to

the investor or their pension fund.

Year 8 - Second Harvest

105 trees are are harvested producing

valuable timber. The total proceeds

are then sent to the investor or their

pension fund.

195 trees remain.

Year 10 - Third Harvest

The average tree height is now

25.89 metres or 84.94 feet.

68 trees are are harvested producing

valuable timber. The total proceeds

are then sent to the investor or their

pension fund.

Year 12 - Final Harvest

The final 127 mature trees are harvested

producing valuable timber. The total

proceeds are then sent to the investor

or their pension fund.

After the final harvest the land is placed

within our Forestry Easement Trust.

For more information on our ethical investments or to speak with an advisor, please call us free on 0800 075 30 10 or visit www.ethicalforestry.com

Property Investor Show See us in the press...

For visitors to the show at London‟s Excel Centre in

October, you will have spotted our exhibition stand.

If you are an avid reader of the tabloids, magazines and supplements, you may

have spotted us recently in the press. As our investments become more and

more popular, we are continually getting positive reviews such as the ones

below. Visit the Reviews section of our website to see more.

‘‘

‘‘

If you require an investment that offers good returns, stability

and security, then Ethical Forestry’s timber investments

deserve your consideration.

’’

The Sunday Telegraph. October 2011 ECO FRIENDLY INVESTMENT - Flexible and stable investment that comes with a clear conscience. The Guardian. October 2011

’’ ‘‘

Investors are discovering they can do well by doing good - by putting their money in forests. The Independent. September 2011

’’ Eco-friendly investment

Flexible and stable timber investment that comes with a clear conscience

The stand was a great success with new and existing investors as well as IFA‟s

(Independent Financial Advisors) and agents. During the time at the show, we

were asked many questions and asked a few questions back, as we‟re always

keen to get constructive feedback. We will be exhibiting at more shows this

year with an updated stand that will include the discs of mature Melina shown

in this newsletter. We hope to see you there.

rns, stability and security, then orestry‟s timber investments IEthical Fdeserve your consideration.

A typical forestry investment of £18,000

over 12 years projects returns of £104,189. The investments pay out in regular intervals, making them ideal for mid to long-term financial planning. Ethical Forestry also tailors investments to suit an individual‟s budget, making them flexible. Many investors are taking advantage of this opportunity for saving plans, family trust funds and personal pensions. The investments are HMRC compliant and SIPP approved, so your IFA can simply transfer an existing SIPP pension, or start a new one, making investing a simple process.

Investing in forestry (and ultimately timber) for profit is not a new concept. Financial institutions, hedge fund managers and trusts have invested in timber for years and produced consistent long-term profits for themselves.

They are popular with investors as they offer steady, stable increases with predictably high returns and, as they are not correlated to the stock market, they do not suffer from unpredictable peaks and troughs. Ethical Forestry has made this lucrative investment available to everyone, allowing small

cap investors to benefit from this unique proposition.

A strong, influential factor in deciding whether to invest in timber is the continuing rise in demand, which is projected to rise in line with the growth of the global population; as much as 55.88 per cent (UN) by 2050.

A strong, influential factor in deciding whether to invest in timber is the continuing rise in demand, which is projected to rise in line with the growth of the global population

Developing countries such as China, India and Russia are unrelenting in their requirements for timber for construction and energy wood.

This is driving illegal forestry operations worldwide to cope with the demand, all with devastating effect. Combine this new appetite for timber with the existing and projected global demand, and it is easy to understand why the rainforests continue to be felled at a rate of 13 million hectares per annum - the equivalent of one football pitch every second.

To help relieve this pressure on the natural supply chain, Ethical Forestry has created sustainable plantations, which offer an alternative, ecologically friendly supply source.

Matthew Pickard, Ethical Forestry‟s MD says: “Our plantations are run on a „ for profit‟ basis, clearly focused on producing a good ROI for investors. Investor security is of paramount importance to us, for this reason we own all of our plantations outright and have our own onsite management teams caring for them on a daily basis. No third parties are involved with our operations that you can‟t keep your eye on. This way, we can ensure that all our trees are well maintained and protected, creating investor security thus making us unique within the market place.

“ We know that investing for profit and having a clear conscience are important considerations for investors. For every plantation that Ethical Forestry buy, we also purchase existing wild forests and place them within our forestry easement trust. This easement trust preserves these valuable forests, forever protecting them and the wildlife within them that can be so easily lost.”

For more inf ormation about Ethical Forestry, call 0800 0753010 or v isit www.ethicalf orestry.com

The New 2012 Ethical Forestry Calender

Beautiful animals and insects from around the world

Our new 2012 calender is now available and being sent to all of our investors. The calendar is full of vibrant imagery encapsulating beautiful animals and insects from

around the world. Notably, within this edition is the Tarsier, whose eyes are as big as its brain, the Chameleon, Preying Mantis and the majestic Jaguar.

January February March April May June

Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday 1 1

Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday 2 3 4 5 6 7 8 1 2 3 4 5 1 2 3 4 2 3 4 5 6 7 8 1 2 3 4 5 6 1 2 3 9 10 11 12 13 14 15 6 7 8 9 10 11 12 5 6 7 8 9 10 11 9 10 11 12 13 14 15 7 8 9 10 11 12 13 4 5 6 7 8 9 10 6 17 18 19 20 21 22 13 14 15 16 17 18 19 12 13 14 15 16 17 18 16 17 18 19 20 21 22 14 15 16 17 18 19 20 11 12 13 14 15 16 17 3 24 25 26 27 28 29 20 21 22 23 24 25 26 19 20 21 22 23 24 25 23 24 25 26 27 28 29 21 22 23 24 25 26 27 18 19 20 21 22 23 24

31 27 28 29 26 27 28 29 30 31 30 28 29 30 31 25 26 27 28 29 30 ly August September October November December

Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday 1 1 2

Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday 4 5 6 7 8 1 2 3 4 5 1 2 1 2 3 4 5 6 7 1 2 3 4 3 4 5 6 7 8 9 11 12 13 14 15 6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11 10 11 12 13 14 15 16 18 19 20 21 22 13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18 17 18 19 20 21 22 23 25 26 27 28 29 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25 24 25 26 27 28 29 30

27 28 29 30 31 24 25 26 27 28 29 30 29 30 31 26 27 28 29 30 31

Send to a friend...

If you would like to send our 2012 calendar to a friend, colleague or family member, please supply us with the

recipient‟s name, address and a short message using the contact details below. We will arrange for a calendar

to be sent to them with a personal note from yourself.

To order a calendar call 0800 075 30 10 or email us friend@ethicalforestry.com

For more information on our ethical investments or to speak with an advisor, please call us free on 0800 075 30 10 or visit www.ethicalforestry.com

Sleep walking into retirement

Shocking statistics released regarding retirement plans for women

Nearly half (46%) of women over the age of 40 who live

with a partner have no pension of their own, according

to new research into couples‟ attitudes to retirement.

The extent of women‟s reliance on a partner‟s pension and the State

is not the only shock finding from the research, which also highlights

that many UK couples could be sleep-walking into retirement poverty

as they have no idea what pension income they will need to live on.

More than half (56%) of couples aged over 40 have not worked out how

much money they will need to live on in retirement, with two in five (40%)

admitting to having no financial plans in place for life after work.British

couples also seem reluctant to discuss with each other the finances that

will support them in later life. One in five couples admit to never having

discussed joint retirement financial planning, while only half of those who

have already retired made a joint decision about the annuity they bought.

The Mail Online reports, “As well as women affected by divorce later in life, an

increasing number of widows face being left without any income when their

partner‟s pension dies with him. When cashing in a pension pot, most people

opt for an annuity, which pays a regular income for life. But the vast majority

of men take out a „single life annuity‟, which means that the money is paid

only while they are alive. When they die, the annuity is halted, regardless of any

surviving spouse. So women, who typically live longer than men, will be left with

no income other than the state pension and see their quality of life collapse.”

An Investor‟s Story

If you would also like to

Written by Shoshona appear in An Investor’s

from The Detox Centre Story, please contact

peter@ethicalforesty.com

The 24 year investment is like „growing an inheritance‟ on trees

I was looking for a long term investment that will create income

for me, support the higher education of my daughter and help her

to purchase her first house. When considering where to invest, I

wanted something that would contribute to the world, as well as

our financial security.

After researching the few investments that offer both, I decided to

contact Ethical Forestry. I discussed the various investment options

offered and decided that the Accumulator option was best suited

for my future financial plans.

I also discussed the ecological ethos of the company and it

soon became apparent that they offer renewable, sustainable

investments that contribute to the bonding of the soil and

oxygenating of the planet - which works for me as it is synergistic

with my business‟ ethos.

The fact that the growth in value of the trees is exponential and

unique - both increasing in value per unit over time, and increasing

in units due to growth of the actual trees - appealed to me. It is

reassuring to know that my investment will be well managed, easy

to keep track of and not require time on a daily basis, like stocks.

Ethical Forestry is not regulated by the Financial Services Authority and does not offer any advice about any regulated or unregulated investments, either within this advertisment or elsewhere. Please consult an Independent Financial Advisor prior to making any decision to buy our products.

Our products are not regulated investments. Their value may rise or fall and no guarantees of future performance in respect of income or capital growth are given either expressly or by implication, and you may not get back the full amount you pay for them. Ethical Forestry shall not be held

liable to anyone for any errors, omissions or inaccuracies within this advertisment under any circumstances or for any loss or damage which may arise from the use of any of the information or detail contained herein.