Frequently Asked Questions
What investment opportunities does Earth Returns offer?
Earth Returns offers multiple investment pathways:
- Direct investment in Earth Returns Proprietary Limited (the company developing the system)
- Purchase of Mutual Capital Instruments (MCIs) issued by Earth Returns Mutual
- Green bonds and sukuk backed by PIE Points and MCIs
- Thematic subfunds through the Living Economy VCC
- Future opportunities with Kiniaurum ecological commodities
What returns can investors expect?
Returns from Earth Returns instruments will vary by instrument type and market conditions:
- MCIs (Mutual Capital Instruments): These equity instruments provide potential returns through two mechanisms: (1) dividend distributions from Earth Returns Mutual’s operations, and (2) capital appreciation as the Earth Returns system scales and matures.
- Green Bonds and Sukuk: These fixed-income instruments will offer yields competitive with other green bonds of similar credit quality and duration, with returns coming from regular coupon payments.
- VCC Subfunds: Returns will vary by theme and strategy, with performance benchmarked against comparable thematic impact funds.
It’s important to note that Earth Returns instruments represent a new asset class backed by ecological improvement. While historical returns cannot predict future performance, the system is designed to deliver both financial and ecological returns over time.
For early strategic investors in Earth Returns Pty Ltd (the private company developing the system), more ambitious targets of 3.0x+ capital return over five years and 20% IRR are projected, reflecting the higher risk/reward profile of early-stage investment.
How liquid are these investments?
MCIs can be traded back to Earth Returns Mutual subject to certain rules. Additionally, MCIs can be used as collateral for green bonds or sukuk, providing a capital recovery pathway.
Earth Returns Mutual intends to have MCIs listed on the Australian Securities Exchange (ASX) when a scale threshold of approximately $200 million of issued MCIs is reached. This listing will provide additional liquidity options for MCI holders.
The long-term vision includes developing robust secondary markets for MCIs and eventual listing of Kiniaurum as a regulated commodity, further enhancing liquidity and price discovery.
What is the investment timeline?
Earth Returns offers investment opportunities across multiple time horizons:
- Short-term (1-3 years): Early-stage strategic investment in Earth Returns Pty Ltd
- Medium-term (3-5 years): MCI holdings with potential dividend yields
- Long-term (5+ years): Green bonds, sukuk, and potential Kiniaurum commodity exposure
How are these investments different from other ESG or impact investments?
Earth Returns investments are directly backed by verified ecological improvement, not promises or forecasts. Each MCI represents real work that has already been done, verified, and measured. Additionally, Earth Returns creates assets rather than expenses, allowing for balance sheet improvement rather than compliance cost.
What risks should investors be aware of?
Like all investments, Earth Returns carries risks including:
- Regulatory risk as ecological markets evolve
- Execution risk as the system scales
- Market adoption risk as new asset classes gain recognition
- Valuation risk as new methods of pricing ecological assets emerge
However, the innovative exit strategy using PIE Points as backing reduces many traditional investment risks associated with early-stage ventures.