A billionaire investor has this week opted to put much of his cash in forestry investments, in a move that has been welcomed by alternative and ethical investment advocates, AAA.
Boston, MA, USA, February 14, 2012 — A billionaire investor has this week opted to put much of his cash in forestry investments, in a move that has been welcomed by alternative and ethical investment advocates, Alternative Asset Analysis (AAA).
New Zealand-born and Singapore-based billionaire, Richard Chandler has decided to invest some $150 million into Tasmanian timber group Gunns, which means that he is now one of the their largest shareholders. The investment is intended to be used by the firm to finish the development of its long-awaited Bell Bay Pulp Mill. Chandler is expected to want to start influencing the business and driving growth.
Chandler claims that having an ethical influence on firms is part of the responsibility that comes with investing in them. He said, “Responsible investors will engage corporate governance issues where they encounter them, as an intrinsic and necessary component of professional investment management.”
AAA’s analysis partner, Anthony Johnson, claims Chandler is the latest in a line of influential investors to opt for an ethical approach to investing. Mr Johnson said, Investing in forestry can be an exceptionally ethical approach to making money as sustainable forestry helps communities to prosper while maintaining habitats for wildlife and adding to carbon absorption.”
Adding to the amount of forested land in a country is one of the best and most cost-effective ways of reducing carbon emissions thanks to the carbon sequestration characteristics of trees, claims AAA.
AAA supports forestry plantation investments, such as the one run by Greenwood Management in Brazil, which enables investors to buy up sections of sustainably-operated plantation land, which provide forestry products including charcoal for the steel industry.
Timber prices are expected to increase in the coming years as demand from Europe and emerging economies like China and India starts to exceed supply. Already, China is becoming one of the world’s major importers of timber and this trend is set to continue as its economy grows further.
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The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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