The fires are still burning in the debate about recently launched forestry funds' projected rate of return. A Guide to Investing in Forestry in Ireland has been released by the independent advisers for the Sixth Irish Forestry Funds and other clients. The guide is designed to inform investors about forestry and to refute some recent accusations from within the industry that the projected real rate of return of nearly 8 per cent on forestry funds is unrealistic.

The report maintains that the rates are attainable because the fund takes an innovative approach to forestry and that it is essentially a solid, land-based investment. "The key to a successful rate of return is an entrepreneurial approach to the most effective use of forestry investments for traditional timber growing, leisure and other commercial site uses. We estimate that the real rate of return of 7.75 per cent is achievable. With assumed inflation rate of 4.5 per cent, the compound annual rate of return is 12.25 per cent," says the report.

The industry returns, net of inflation, have traditionally hovered between 4 per cent and 7 per cent.