Central American Timber Fund (CATF)

An introduction to CATF; the Central American Timber Fund


Central American Timber Fund operates independently. Its portfolio of assets in Costa Rica is being invested for the exclusive benefit of CATF.

Our main objective

The main objective of CATF is to provide its unitholders with attractive and sustainable long term total returns, in the form of long-term capital appreciation, through investing in a portfolio of diversified wood assets, while safeguarding nature and environment and creating benefits to the local population at the same time.

Diversified portfolio

CATF aims at maintaining and building a diversified portfolio of wood plantations located in Latin America, with a focus on Costa Rica and works therefore in close cooperation with local and international service providers. CATF can initiate new plantations as well as will maintain already existing plantations.

Biological Growth

The largest component of timberland return is from the trees themselves and is driven by biological growth and timber prices. Biological tree growth generates a largely consistent, absolute return on timberland property. Tree growth accounts for an increase in timber volume year-on-year and higher timber unit values from increased tree size. The growth rates vary often substantially with species and climate.

Direct and indirect investments 

CATF will also indirectly hold most of the real estate property on which the plantations are made as well as the trees themselves. Hereto direct and indirect investments will be made.

Targeted Internal Rate of Return ("IRR")

CATF aims to achieve an IRR (after fees, taxes and expenses) over the term of CATF of 7 (seven) per cent per annum. However, the management company does not guarantee that the target net IRR will actually be achieved. Through age diversification and active management of wood assets, the management company will aim to balance the CATF's objectives of becoming cash flow positive with its goal of creating capital growth. The overall objective of the CATF is to maximise unitholder value. CATF will generally seek investments in wood assets giving it a controlling interest of 100%.

There can be no assurance that the investment objective and policy of CATF will be achieved. Consequently, the nett asset value may increase or decrease and positive or negative returns of different levels may arise.

Keypoints of the Central American Timber Fund

  • A fully transparant organisation with a highly experienced and well qualified team of professionals operating at each level of the fund. 

  • Central American Timber Fund offers a sustainable and 'green' investment, safeguarding nature and environment and creating benefits to the local population. 

  • As teak is the only proven high-grade tropical hardwood species successfully grown commercially and on a relatively large scale in plantations it will continue to be grown under a variety of arrangements. 

  • Central American Timber Fund aims at building a diversified portfolio of wood plantations.

  • Biological tree growth generates a largely consistent, absolute return on timberland property.