Irish Forestry Services has announced details this week of its Third Forestry Investment Plan. The company projects a 9.6 per cent per annum tax-free rate of return over a 10-year period for a minimum investment of £500 (€635). The fund is asset-backed and managed by the State's largest forest managers. Shares are freely transferable.

The €2.54 million (£2 million) fund will invest in pre-established and bare land afforestation supported by EU and Government grants. The forests will be professionally managed during the term of the fund to maximise their market value.

Thereafter they will be sold with investors receiving the proceeds free of tax.

Mr Paul Brosnan, director of the Third Forestry Investment Plan, said market forces had shown that investment in natural resources, such as forestry, would constantly provide a predictable and steady rate of return. Irish Forestry Services manages forestry funds on behalf of 6,700 shareholders.