Tag Archives: Forestry investment

Business

FRA ‘shocked’ at World Bank Forestry Report

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The $4.1 billion in funding invested by the World Bank into forestry projects has largely failed to fulfil its goals, according to the Bank’s own investigation

Bainbridge Island, WA, February 01, 2013 – The $4.1 billion in funding invested by the World Bank into forestry projects has largely failed to fulfil its goals, according to the Bank’s own investigations. Forestry Research Associates (FRA) claims that encouraging more private investment into sustainable plantations could help to improve the lives of those living in vulnerable forested regions.

The World Banks has given cash to 345 forestry projects spread over 75 nations in the ten years to July 2011. However, the report said that many of these projects were not being run sustainably or in an environmentally friendly way. The World Bank came under criticism for continuing to support industrial logging and failing to ensure the benefits of their cash were going to the rural poor rather than the local wealthy people, who were, in fact, benefiting more in some cases. The World Bank also failed to involve local communities in decision making.

Many countries in Europe and elsewhere have invested millions of dollars into the fund to support the forestry projects being backed by the World Bank. It is thought that this latest report could lead to a major review of these contributions. The UK, for example, has contributed $600 million to the Bank’s forestry schemes in the last five years.

FRA’s analysis partner, Peter Collins, said, “The news that the World Bank’s cash could have been doing the opposite of helping poorer communities and preventing climate change is a shock and we believe it’s now time to look at other ways to help these regions.”

FRA supports a range of sustainable forestry investment schemes, such as the sustainable plantations run by Greenwood Management in Brazil. Through these projects, local communities learn that keeping natural forests alive and standing can generate rewards through carbon trading deals, for example. At the same time, managing plantations responsibly means the forestry industry is safeguarded for generations to come.

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

Business

FRA welcomes report on climate change mitigation investment

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The World Economics Forum has released a report that states that some $700 billion is needed in extra funding to make a real difference to climate change. The report has been welcomed by analysts at FRA, which endorses investment in sustainable forestry projects.

Seattle, United States, January 25, 2013 — The World Economics Forum has released a report that states that some $700 billion is needed in extra funding to make a real difference to climate change. The report has been welcomed by analysts at Forest Research Analysis (FRA), which endorses investment in sustainable forestry projects.

The report outlined the fact the cash invested into climate change mitigation in 2011 was 93 per cent higher than the amount invested in 2007. However, the World Economics Forum still suggests this is way too low. Its report stated: “This business-as-usual investment will not lead to a stable future unless it achieves environmental and sustainability goals.”

FRA agrees that investment needs to be ploughed into areas such as clean energy, sustainable aforestation and preventing deforestation, low carbon transport and clean energy infrastructure.

Promoting ethical and green investments now is key to the future of the planet, according to a recent blog post by the Forum’s global managing director for strategy and sustainability services. He stated, that if people continue to invest in non-clean energies it could tie us all into many more years of reliance on these unsustainable sources of energy that will continue to contribute to climate change.

FRA’s analysis partner, Peter Collins, added that investing in timberland that produces sustainable and non-native lumber is a great alternative investment for those who agree with the Forum’s message.

“We endorse investment in clean energy and sustainable schemes, such as plantations run by businesses like Greenwood Management.”

Greenwood Management’s plantations of teak and eucalyptus are grown in regions where these species are not indigenous. They grow quickly and offer a great alternative to using timber from natural rainforests in the region. “The steel industry in Brazil uses a large amount of charcoal and it can now source this charcoal sustainably thanks to these kinds of plantation projects,” claimed Peter Collins.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media 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

Business

Timber Prices set to continue to Rise, claims FRA

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FRA has welcomed a report from Investorplace.com, claiming that timber prices are not set to fall in 2013, making the asset class a good bet for investors looking to diversify this year.

Seattle, United States, January 8, 2013 — Forestry Research Associates (FRA) has welcomed a report from Investorplace.com, claiming that timber prices are not set to fall in 2013, making the asset class a good bet for investors looking to diversify this year.

There are several reasons that the article gives for retaining faith in timber prices in the US. Writing for Investorplace.com, Aaron Levitt says, ‘Driven by several forces – including a rebound in the US housing market, expanding pulp sales and a few issues with Mother Nature – timber became the commodity du jour during the last year.’

He goes on to talk about the gains in the US housing market that are expected this year. Increases in house prices in 2013 will be the first since 2006 and, in response to this, new home building is up by an impressive 42 per cent on a year ago.

This increase in housing starts is the main reason for the increase in lumber prices, according to Levitt, and FRA has welcomed this news. Its analysis partner, Peter Collins, said, “The knowledge that 42 per cent more homes are being built than a year ago in the US is a strong indicator that timber prices will be on the up in 2013 and beyond.”

“Now is great time to invest in timber and timberland for a medium and long-term investment that is likely to diversify a portfolio against risk and act as a hedge against inflation,” he went on to say.

To illustrate this point, the price of framing timber, which is used in new homes, has increased by 38 per cent in 2012 to around $373 per 1,000 board-feet.

FRA supports a wide range of sustainable, environmentally friendly alternative investments, including investing in sustainable plantations of non-native trees in Brazil and Canada. Investments in these kinds of plantation can be taken out through firms like Greenwood Management.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media 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

Business

Now could be a ‘Great time’ to increase Gold exposure – AAA

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The fact that gold prices have fallen off slightly in the past month should not put off alternative investors, claims AAA. Instead, now could be a great time to buy up gold before prices rise once more.

Boston, MA, January 04, 2013 – The fact that gold prices have fallen off slightly in the past month should not put off alternative investors, claims Alternative Asset Analysis (AAA). Instead, now could be a great time to buy up gold before prices rise once more.

The price of gold dropped to a low of less than $1,670 per ounce, from around $1,750 an ounce a month ago, according to the latest figures. The drop was attributed largely to two large sell-offs of gold reserves and this has got tongues wagging about the possible reasons for the sell-offs.

“With prices a bit lower than they have been of late and long-term fundamentals for the precious metals still strong, now is a great time to take advantage of the bargain price and add gold to your portfolio” stated AAA’s analysis partner, Anthony Johnson.

Investors who have no gold exposure at the moment can benefit from the popularity of gold as a result of ongoing volatility in the stock markets, low confidence in paper money and low interest rates. All these factors add up to a good outlook for this alternative investment, and for alternative investments in general, claims AAA.

In terms of the allocation for gold or silver investments, around 5 per cent has long been the recommended level of exposure. AAA claims that although gold is a good bet, other asset classes, such as forestry can help investors to generate returns from actual growth of an asset, rather than the faith-based returns one hopes for when investing in precious metals.

“Investing in an asset like timberland is great because you can actually watch your asset physically grow,” added Mr Johnson.

“Forestry investment is truly flexible – If the market isn’t looking too hot when you come to sell your timber, just leave it growing for a little longer until prices improve.”

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com

Business

Reports that Green investment is Increasingly Attractive are Welcomed by AAA

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AAA is backing a recent feature by Market Watch, which claims investments in green asset classes will increase alongside general interest among the US population.

Boston, MA, December 21, 2012 – Alternative Asset Analysis (AAA) is backing a recent feature by Market Watch, which claims investments in green asset classes, such as timberland, agriculture and sustainable energy will increase alongside general interest in these issues among the US population.

A crisis such as Superstorm Sandy can really make the threat of climate change hit home to people in the US, who don’t generally have to worry about the impact of climate change in their day-to-day lives. Experiencing some of the weather phenomena that blight other areas of the world can make Americans sit up and take notice of the issues and want to help through their investment choices.

This is according to AAA, an alternative asset analysis group, which endorses green investment. It is keen to underline the claims made in the Market Watch article, which talks about how climate change is increasingly an issue in the public consciousness. It stated that people who are taking green issues seriously can make a difference through impact investing. It said, ‘Globally, the environment has been woven into impact investing through programs and products that address water, waste and energy.’

The article adds that things like an upcoming program about climate change that is due to air on the Showtime Network in 2013 and the recent climate talks in Doha being covered on the news all help to inform people about the threats.

Those who then go on to discover how green investments can help to reduce the impact of climate change, while helping investors to see generous returns, often decide to take the plunge and try alternative investments and impact investing.

AAA supports forestry investment through businesses like Greenwood Management, which runs sustainably managed plantations in Brazil and Canada. AAA’s analysis partner, Anthony Johnson, explained, “Investing in trees can help to reduce carbon in the atmosphere, providing timberland is managed sustainable.”

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com

Business

Forestry can help to Diversify Portfolio, says FRA

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A recent article from GreenWorld BVI, calling for gold investors to supplement their portfolios with agriculture and forestry investment, has been endorsed by FRA.

Seattle, United States, November 16, 2012 — A recent article from GreenWorld BVI, calling for gold investors to supplement their portfolios with agriculture and forestry investment, has been endorsed by Forestry Research Associates (FRA).

The main reason that GreenWorld gives for diversifying away from solely gold investment included the fact that gold does not pay an income until it is sold. It is also a “faith-based investment”, as GeernWorld explained: “Gold is largely an economically unproductive asset.”

Agriculture and forestry are alternative asset classes, as gold is, and they also tend to keep their value during times of economic turmoil and offer a buffer against inflation, like gold. However, through investing in managed forestry and agriculture projects, investors can also enjoy regular incomes. An example is the projects run by Greenwood Management in Brazil, claims FRA.

These projects are intended to offer mid-to long-term investment options for those who want to buy up their own piece of sustainable forestry. Through working with Greenwood Management, investors enjoy the benefits of having their own managed forest land, while receiving income in the form of payouts when trees are harvested in a cyclical process. The timberland is managed to ensure there is new growth to replace mature trees that are cut down and sold. Trees that are sold generate returns for investors, who also enjoy a pay out when their investment reaches maturity.

Investing in forestry is a good option for any risk-averse investors who want to diversify their portfolio further. Spreading investment between several different asset classes offers good protection against risk and forestry is one of the most risk-averse assets. This is because timber simply carries on growing in size and value all the time, so if the market conditions aren’t right when investors want to sell, they can simply hang on a little longer and sell a larger product at a higher price.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media 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

Business

Investing in Brazil is a great long-term option, says AAA

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Alternative investment advocacy group AAA claims that there is enough evidence to suggest that further economic recovery is on its way in Brazil and growth rates of 3-4 per cent can be expected in the coming years.

Boston, MA, USA, November 14, 2012 — Alternative investment advocacy group, Alternative Asset Analysis (AAA) claims that there is enough evidence to suggest that further economic recovery is on its way in Brazil and growth rates of 3-4 per cent can be expected in the coming years.

A large number of people put their cash into Brazil in the past few years, as growth rates hit as high as 6 or 7 per cent. However, growth fell to just 1.5 per cent this year and the economy has failed to deliver in several areas, AAA has admitted. For example, those who invested in its stock markets have seen a 5 per cent fall in values in dollar terms and the value of its currency, the real, also took a hit against the dollar this year.

However, AAA claims that strategic government moves, such as the slashing of interest rates to a record low of 7.25 per cent, have helped to get recovery back on track. “Those who have investments in Brazil will see strong returns over time,” claimed AAA’s analysis partner, Anthony Johnson. He predicted that growth of between 3 and 4 per cent will return before too long.

AAA supports a range of alternative investment products and funds, but focuses on ethical options like impact investing and sustainable forestry investment. “Brazil is a great place to invest in forestry,” explained Mr Johnson. “It has lush, fertile conditions and there is a growing demand for sustainably produced timber due to huge house building projects and infrastructure investment in advance of the country hosting the FIFA World Cup and the Olympics within the coming four years.”

One forestry investment option, run by Greenwood Management, offers people that chance to invest in their own piece of forestry plantation for as little as $15,000.

About Alternative Asset Analysis:
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.

Media Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com

Business

Real Estate Investment still Proving Popular in the US, claims AAA

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Investors are planning on buying up real estate in the US in order to sell it on at a later date or rent it out at a profit, claims AAA.

Boston, MA, November 09, 2012 – Investors are planning on buying up real estate in the US in order to sell it on at a later date or rent it out at a profit, claims Alternative Asset Analysis (AAA).

The alternative investment advocacy group made the remarks after the release of a study showing that real estate investors are planning to up their investments in the coming 12 months. This is despite the fact that house prices are rising and some insiders claimed that it was becoming harder to make a profit on the housing market.

The study, carried out by BiggerPockets.com, a website for real estate investors, found that 65 per cent of those already investing in real estate in the US were planning to considerably increase their investments over the coming year.

“These results show that investors are just as keen on alternative investments as ever and are confident that there is still plenty of money to be made in the real estate investment industry – especially through the buy-to-let angle,” claimed Anthony Johnson, AAA’s analysis partner. He added that investors may actually contribute towards the recovery of the US housing market.

The study also found that a large number of house owners are spending thousands on renovations. The recovery of the housing market and the popularity of undertaking home improvements is great news for the forestry sector, according to AAA. Mr Johnson said, “We predict that the recovery in the housing market in the US will mean more demand for timber, which will drive up lumber process and returns for forestry investors.”

AAA advocates sustainable forestry investment, through plantation projects such as those run by firms like Greenwood Management in Brazil and Canada. “Investing in forestry through projects like these is a popular alternative investment choice for those who want to put their cash into something more tangible than stocks and shares,” added Mr Johnson.

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com

Business

Investment Expert says Timber to outperform all other Asset Classes

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The latest prediction from investment guru Jeremy Grantham that timber will outperform all other asset classes in the coming seven years has been welcomed by FRA.

Seattle, United States, November 2, 2012 — The latest prediction from investment guru Jeremy Grantham that timber will outperform all other asset classes in the coming seven years has been welcomed by Forestry Research Associates (FRA).

The research and analysis consultancy supports forestry investment and is backing Mr Grantham’s prediction that annualized returns for timber investors will reach around 6.5 per cent over the coming years. Grantham is well-known in investment circles for co-founding the Grantham Mayo Van Otterloo (GMO) fund and has made a number of accurate prediction about asset bubbles in the past.

“It’s a good idea to take note of Grantham’s predictions when it comes to the next big asset,” claimed FRA’s analysis partner, Peter Collins. “At a time when stocks and bonds are continuing to struggle to generate anything near a strong return, a growing number of investors are looking for the perfect alternative asset class in which to put their hard-earned cash – and timber could be just that.”

In addition Grantham’s predictions may be on the modest side, as they only take inflation of 2.2 per cent into account. With higher inflation, returns from timber investment could be even higher.

The average price of timber has risen by 5 per cent each year for the past 100 years and timber tends to do particularly well during times of economic hardship, making it a very attractive prospect at the moment. For example, between 1973 and 1981 when the US inflation rates grew to as high as 9.2 per cent, timber prices were increasing at a rate of 22 per cent per year.

Mr Collins added, “Investing in timber through sustainable projects like those run by Greenwood Management in Brazil offers an ethical way to invest in managed forestry and a great opportunity to see strong returns while helping to reduce climate change and deforestation.”

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media 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

Business

Thinning payouts will attract more people to forestry investment, claims FRA

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News that a forestry investment firm is making interim payouts to investors, as a result of a thinning process, will attract others to forestry investment, according to FRA.

Seattle, United States, October 26, 2012 — News that a forestry investment firm is making interim payouts to investors, as a result of a thinning process, will attract others to forestry investment, according to Forestry Research Associates (FRA).

Forestry investment firm Greenwood Management has announced it is hoping to make its first payout to investors who have been with the company since ‘Phase 1’ of their Acacia project, in Spring 2013. The payout will take place after Greenwood has undertaken a thinning exercise, which removes some of the trees in a plantation to allow others to flourish and grow as strong and large as possible, thus maximizing the quality of the final harvest.

The trees that are removed through the thinning process are sold for use in the production of charcoal or for use in fence construction, for example. FRA’s analysis partner, Peter Collins, stated, “This type of forestry investment model ensures that anyone investing in timberland doesn’t have to wait until final harvest to see returns on their investment – they see returns throughout the process, which is a very attractive prospect for those looking for a more medium-term asset class.”

Greenwood Management’s Acacia plantation is one of its most established and the initial Phase 1 investments were made back in 2008. Greenwood claims that the project is “well on target” with its, “operating model and is progressing extremely well in Bahia state, Brazil.”

The final harvest of the trees in which people have invested should be sold for a much higher value, as they will be larger and of the best quality, explained Greenwood Management. However, it added that it will try to optimize the returns from the thinning process for investors, which means ensuring that the timber is sold when market conditions are at their best.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media 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