New Earth Funds

04 November 2012

Global investment conditions remain unsettled as a result of the economic downturn, international banking crisis and continued Eurozone uncertainty.

The net result has been extreme market volatility and unpredictable investment returns.

The New Earth Sub-Funds offer the opportunity to participate in a proven, truly green operating process with the potential to achieve double-digit returns. It has an asset-backed structure designed to deliver investor returns from investing directly into a vehicle holding two principal assets; first, the hard assets of land, buildings, plant and machinery and second, long term Local Authority waste supply and treatment contracts.

We believe there are several compelling reasons as to why this investment could be attractive to certain types of investor:

1. A unique opportunity

We are not aware of any comparable fund enabling direct investments into a proven waste management mechanical biological treatment solution which also participates in renewable energy production from waste.

2. Attractive returns and low volatility ratio

Returns are targeted at 12-15% p.a. which are currently being achieved and are forecast to be maintained over the medium to long term. This is being achieved with low volatility, supporting the appeal of this alternative investment.

3. Non-correlated to the main asset classes

The fund’s performance is not directly related to equity markets or indeed the current situation in the Eurozone. Plus with the general population continuing to rise, the supply of waste could be considered to be “recession proof!”

4. Meets the social, economic and legislative drivers in landfill waste management and renewable energy

The UK waste industry is undergoing a complete change in the way it has to process the country’s waste. This involves dramatically reducing the reliance on landfill to one where it processes its waste in treatment plants. The UK has one of the highest landfill rates in Western Europe and landfill tax has doubled since 2008 – the current rate is £64 per tonne and this is set to rise to £80 in April 2014.

At the same time, the energy industry is required to achieve challenging targets for the production of energy from renewable sources including waste-derived fuels. As a result, the government has introduced a system of incentives called Renewable Obligation Certificates (ROC’s). This helps producers of renewable energy to obtain attractive long-term energy prices by selling the electricity generated into the national grid.

New Earth Group is an established UK provider of waste treatment facilities and has developed a cutting edge recycling process to help local authorities and commercial operators meet their legal obligations to divert waste away from landfill sites.

The company is also developing complementary operations in the renewable energy sector and is perfectly placed to deploy state of the art advanced thermal technologies. Both of these sectors are dynamic, fast growing and in need of substantial investment in infrastructure & services.

The energy recovery plant at Avonmouth, near Bristol should be fully operational by March 2013, however it will start to export electricity by the end of 2012, generating up to 13MW of renewable electricity, enough to meet the needs of 24,000 homes!

5. Robust, predictable, long-term contracted income from Local Authorities

New Earth Group delivers an environmentally compelling and cost effective alternative solution to landfill. The Group has secured c. 5 million tonnes of waste by winning medium and long-term Local Authority waste treatment contracts. These translate into highly predictable revenue streams, which underpin the development of new facilities.

6. Great prospects from a strong and experienced management team

Bill Riddle (Chairman & founder) leads the New Earth Group management team committed to establishing a market leading business in UK waste management and renewable energy solutions. Since the summer of 2008, the Group has grown from a single site to having five operational waste treatment facilities.

In summary, the key points of the Fund are as follows:

  • +61.20% net growth to October 2012, since launch in July 2008
  • Compound Annual Growth Rate (Sterling sub-fund): +11.89%
  • Widely accessible via new and existing offshore portfolio bonds, SIPPs & direct investment
  • 100% allocated to shares
  • Annual Management Charge: 1.5%
  • Fund size: c. £130m
  • The Premier Group (Isle of Man) Limited are licensed by the Financial Supervision Commission
  • Custodian: BNP Paribas
  • Administrator: IFG Fund Administration (IOM) Ltd
  • Available in GBP£, USD$ and Euro€ currency options
  • Well placed to deliver in changing/unsettled markets

 

If you would like to receive further information on the New Earth Sub-Funds, please send an email request by clicking here.

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