We were recently sent an Investment scheme from the TFS Corporation in association with Wise-Owl.

The TFS Corporation are offering ‘Growers’ (Investors) a chance to purchase Indian Sandalwood trees within a number of plantations and are paid a dividend when harvesting finishes in 14 years (first in 2011/12). Investors/Growers have the ability to divest after 4 years although keep in mind this is a long term investment on a product thats price has increased 21% P/A (compounded) for the last 17 years.

In the scenario below if John were to invest $50,000 into the TFS Investment scheme with a conservative estimate of a 5% growth per year we would see the following numbers;

$50,000 x 0.05 = $2,500

$50,000 + $2,500 = $52,500

$52,500 x .005 = $2,625

$52,500 + $2,625 = $55,125

so on and so on, until you get to the final figure (if we stick to the 5% p/a and not 21% p/a) you would end up with a total gross profit of $98,996.

The TFS Corporation are a publically listed company on the Australian Securities Exchange with a market capitalisation of $217 Million, they also happen to own the largest Indian Sandalwood plantation in the world and currently led by Frank Wilson and Ian Thompson (both very well established businessmen, more information below).

‘This aromatic wood is internationally prized for use in religious worship, joss sticks and to extract Indian Sandalwood oil for use in fine fragrances such as Chanel No 5″

Considering India’s population is nearing 1.4 billion and you can see why there is such a high demand for the product.

Another added benifit is the ATO have given the scheme the greenlight to allow the first year of your investment to be taken from your total income meaning you could potentially move down a tax bracket!

This would be a great opportunity for investors to open their protfolio to a strongly represented and complimented Corporation in a sector (Foresty) that has outperformed the S & P Index for the past 30 years along with the confidence from Australias leading independant Stock Market Research House Wise-Owl.com.

Below is the release although if you are interested further please contact Joe at joeb@wise-owl.com

Company Name: TFS Corporation
Sector: Agribusiness
Yr established: 2000
Business stage: First Harvest to commence 2011/2012
Location: Kununurra, Western Australia
Seeking: Managed Investment Scheme (MIS) Investors

EXECUTIVE SUMMARY

TFS Corporation Ltd is a Western Australian public company, committed to the growth and management of Indian Sandalwood plantations on behalf of Growers (investors) and the Company itself. TFS, a specialist Indian Sandalwood manager, is committed to the long term development of Australian grown Indian Sandalwood. TFS is committed to sustainable development to preserve long-term benefits for the community, environment and TFS.

The TFS Sandalwood Project 2009 gives you the opportunity to grow your own Indian Sandalwood, a wood with strong demand and diminishing supply. This project aims to produce high quality Indian Sandalwood, a commodity that has been traded for thousands of years. This aromatic wood is internationally prized for use in religious worship, joss sticks and to extract Indian Sandalwood oil for use in fine fragrances such as Chanel No 5.

COMPETITIVE ADVANTAGES

• Forestry has outperformed the S&P index for over 30 years.

• Indian Sandalwood is the most valuable species of sandalwood in the world, achieving over $100,000 per tone of heartwood in November 2008  (heartwood is found at the core of the tree and is the source of the sandalwood oil aroma).

• Australia has the only known large-scale commercial plantations of Indian Sandalwood in the world, with TFS being the largest.

• One of the only Forestry MIS products to receive the ATO’s Tax Effective ruling for 2009.

KEY INVESTMENT HIGHLIGHTS

• Well placed to take advantage of strong sandalwood prices.  Sandalwood prices have increased by 21% P/A (compounded) for the past 17 years in response to growing demand and dwindling global supply.

• High barriers to entry should limit the supply side response, leaving TFS little competition to fill the hole in the global sandalwood market by providing a consistent source of supply.

• TFS has an experienced team of professional foresters, agronomists and agricultural scientists who manage the Indian Sandalwood plantations.

• The Kununurra region has the right soil type, tropical climate, lack of natural predators and an abundance of water sourced from Lake Argyle (over 30 times the size of Sydney Harbour).

• Flexible product options including 100% long term finance or 12 months interest free. (limited numbers)

Board and Management

Frank Wilson

Executive Chairman

Mr Wilson is the founding Chairman, major shareholder and Chief Executive of TFS Corporation. For 16 years he held the role of founding principal and Managing Partner of legal firm Wilson and Atkinson. Mr Wilson is an experienced businessman with a long-standing involvement in the MIS industry. He has also been an advisor to a variety of large listed public and private forestry and viticulture groups.

Ian Thompson

Director Sales and Marketing

A former senior executive of News Corporation, Mr Thompson is a former Managing Director of Community Newspapers Perth Print and the Super League Perth. Among his achievements was the building and commissioning of a $100 million printing works for Perth Print, a wholly owned subsidiary of News Corporation. As Director Sales and Marketing, Mr Thompson has increased MIS sales volume and revenue by over 150% since 2007.

Corporate Structure

TFS is a wholly owned subsidiary of TFS Corporation Ltd (TFC), a public company listed on the Australian Securities Exchange with a market capitalisation of $217 million in 2009.

Exit Strategy

Harvesting is conducted in years 13 & 14 however there is the opportunity to divest from year 4 onwards (in the secondary MIS market).

SFB