Pension funds are increasing the amount of money being invested in forestry. The Irish Forestry Unit Trust - a partnership between AIB Investment Managers, Irish Life and Coillte - has reported a strong increase in new unit sales in 1998 from £7.8 million (€9.9 million) to £10.3 million. During the 12-month period the fund performed well, with unit prices rising by 8.4 per cent.

The trust was established in 1994 to facilitate pension fund and charity investment in Irish forestry. The fund now has a portfolio of almost 11,000 hectares of commercial forest making it the largest private forestry grower in Ireland.

In 1998, IFUT had net timber sales of £1.02 million compared with £560,000 in 1997 in line with the maturing profile of the trees under plantation. In 1999, the fund is seeking to attract annual investment funds of £20 million from pension fund managers.

In the longer term it aims to increase the trust to £250 million. The trust is open to investments from pension funds and charities which are exempt from income and capital gains tax.