Increasing green investments in asset classes such as forestry will help investors and will also help to boost the creation of a sustainable economy, according to an experts US-based money manager and FRA.
Bainbridge Island, WA, August 16, 2012 – Increasing green investments in asset classes such as forestry will help investors and will also help to boost the creation of a sustainable economy, according to an experts US-based money manager and Forestry Research Associates (FRA).
Quoted by KMS Baltic, Jeremy Grantham, the head of Boston-based investment firm GMO said that investing in green asset classes should be encouraged, In response, FRA, A research and analysis consultancy, has agreed, stating, “investing in sustainable forestry and other green asset classes can help developing countries to start to reap the benefits of a truly global sustainable economy.”
The statement from Mr Grantham came as part of a letter to his GMO clients last week. As a result of his views on the importance of green investments and the rising price of food, in particular, GMO is changing its focus to include around 15 per cent investment in forestry and agriculture land from now on.
His letter stated, “You can confidently expect that if resource prices steadily rise in real terms, then resource stocks should outperform the market.”
FRA’s analysis partner, Peter Collins, said that the increased use of materials like timber as a fuel is also a reason to invest more heavily in these resources. “As energy prices continue to rise and fossil fuels become more scarce, the demand for biomass energy, which include crops and wood chips, is bound to rise further and further. Investing in sustainable sources for these resources should pay dividends in the future.
FRAs support sustainable forestry investment through plantation projects such has the one run by Greenwood Management in Brazil. A growing number of investors are opting for forestry investments as demand for timber grows as a result of renewable energy demand and demand for timber as a construction material in China, India and other emerging economies.
Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com