Company Information for The Phaunos Timber Fund

Company stock charts - 12 Month chart

LSE; PTF View full financial data

Company Statement

Phaunos Timber Fund Limited is a closed ended investment company registered in Guernsey which aims to provide its Shareholders with attractive long term total returns through a diversified global portfolio of timberland and timber-related investments. FourWinds Capital Management has been appointed Investment Manager of the Company.

In addition to the broadly diversified Portfolio of ten investments in seven countries, the Investment Manager has built a robust pipeline of potential investments all over the world, valued in total at over $2.5 billion. The Investment Manager’s goal is to enlarge commitments in the regions where investments were made in 2007 as well as continuing to incorporate new capital into the Company during 2008.

In order to take advantage of a number of potential investment opportunities which are or may become available to the Company, the Company intends to raise additional capital of up to approximately $1.6 billion, by way of one or more issues of C Shares. The raising of such additional capital will also permit the Company to take larger investment participations in those existing investment opportunities considered to be sufficiently attractive to merit it.

The Ordinary Shares of the Company are currently admitted to trading on the Official List of the LSE and to trading on the Main Market. The Ordinary Shares are also admitted to listing and trading on the CISX. The company ticker is PTF. Its capital is denominated in US Dollars and the company will not have a fixed life.

Investment objectives and policy
The Company’s investment objective is to provide Shareholders with attractive long term total returns, predominantly expected to be in the form of capital appreciation but with some income, through a diversified portfolio of timberland and timber-related investments.

The Portfolio is diversified through investment in a broad range of investment strategies and vehicles including, but not limited to, investment in a variety of tree species, tree age classes and a diversified range of geographical timberland markets in order to provide sustainable returns, to control volatility and to manage risks. There are no predetermined geographical limits on investments made by the Company.  The investment focus of the Company includes both investments in well established markets and investments in less developed timberland markets. The Company will invest in at least four different regions of the world. No single country (or region of the US) will represent more than 40 per cent. of Gross Assets and no continent more than 60 per cent. of Gross Assets. Generally, the Company will not invest in securities carrying unlimited liability and no single investment or investment in the securities of one company may, at the time of acquisition, exceed 30 per cent. of Gross Assets. For these purposes, where the Company invests in a portfolio of assets, each underlying individual asset shall be treated as a single investment and where the Company invests by means of a holding company, joint venture or similar investment or investment vehicle, each underlying property or similar asset shall be treated as a single investment.

Investment Strategy
The Company’s investment strategy is to build a diversified portfolio of timberland properties and timberland-related investments through a research-led ethically and socially responsible investment process designed to identify and acquire timberland, or forestry, or related investment vehicles or structures related to these vehicles. The strategy is intended to allow the Company to build an optimised timberland portfolio in terms of geographical allocation, age class and species that will maximise after-tax returns while seeking to control volatility and limit downside risk exposure. The Company believes that this approach generates both current income and long term capital appreciation for Shareholders.

Different age classes of tree provide harvestable timber over time and diversification by species and geography provide exposure to both different growth rates and different market segments/prices. Harvested land is generally either replanted or allowed to regenerate naturally, as appropriate. Where the Company disposes of its properties they will either be sold as timberlands or, where practicable, for an alternative use which commands a higher price, being the “Highest and Best Use”.

The Company has sought exposure to larger tracts of commercial timberland, as well as reviewing opportunities for smaller tracts or groups of smaller tracts where those opportunities provide higher return potential or exposure to niche markets.

The Company works with market-leading, major timber management groups and experienced local forest managers in the selection, acquisition and management of its timber investments. Because of the broad international mandate of the Company and its ability to work with a diverse spectrum of leading timber managers and investors, the Investment Manager believes that the Company has the opportunity to evaluate and consider participation in both well-known, limited access investments or more exclusive specialist opportunities. This scope allows the Company to analyse and select both partners and investment opportunities that the Investment Manager considers best suit the needs of the Shareholders and allow the Company to build a well-diversified portfolio.

Investments in the Portfolio are currently, and will in the future be, made in currencies other than US Dollars and distributions and income from or the proceeds from the disposal of certain investments in the Portfolio will be realised in currencies other than US Dollars. Consequently, the value of non-US Dollar denominated investments in the Portfolio will be affected by currency movements and will fall if the US Dollar appreciates against the currency in which such investments are denominated. In order to hedge against interest rate risks or currency risk, the Company may, where appropriate, also enter into forward interest rate agreements, spot or forward currency agreements, interest rates and bond futures contracts and interest rate swaps and purchase and enter into put or call options on interest rates or currency rates and put or call options on futuresof interest rates or currency rates.

The Company expects to generate cash flow to meet working capital requirements, with any surplus netincome potentially to be distributed by way of dividend payments, by the harvest and sale of timber growing on invested properties or investment vehicles, as well as through secondary sources of return from those properties and investment vehicles. Additional sources of return could include, but are not limited to, recreational licences, outsourced utilisation of mineral or water rights, or carbon credits.

Board of Directors and Key Management

Keith Oates

John Le Prevost

Liane Luke

Peter Niven

Kimberly Tara

Company Address Anson House St. George’s Place St. George’s Esplanade St. Peter Port, Guernsey, United Kingdom GY1 2BE Telephone: +44 (0) 1481 722 260 Facsimile: +44 (0) 1481 729 829 Email: info[at]phaunostimber.com Website: http://www.phaunostimber.com

Capital The Company’s total issued share capital consists of 470,919,230 Ordinary Shares each (“Ordinary Shares”), with one voting right per share. There are no shares held in Treasury.

Nominated Advisors Shore Capital and Corporate Limited Bond Street House 14 Clifford Street London W1S 4JU

Major Shareholders

Shareholder	Number of Ordinary Shares	% of issued share capital
Chase Nominees Limited (1)	19,230,770	4.08 %
Chase Nominees Limited (2)	28,975,697	6.15 %
Citibank Nominees (Ireland)Ltd	124,072,789	26.35 %
Euroclear Nominees Limited	165,027,343	35.04 %

Related News

28/01/07 - The Attractions Of Timber And The Phaunos Timber Fund

Most Recent Statement

29/10/08 - Fazenda Aruanda Investment Update
15/10/08 - Pradera Roja Investment Update #2
13/10/08 - Pradera Roja Investment Update
23/09/08 - Director/PDMR Shareholder Notice
08/09/08 - Land Acquisition in Brazil
29/08/08 - Interim Results Announcement