Tag Archives: Forestry investment

Business

FRA Welcomes New of Major Russia-China Forestry Investment

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FRA has welcomed news that a fund jointly run in Russia and China is to invest some $200 million in a Russian forestry company.

Bainbridge Island, WA, September 27, 2012 – Forestry Research Associates (FRA) has welcomed news that a fund jointly run in Russia and China is to invest some $200 million in a Russian forestry company.

The deal has been struck off the back of an initiative launched at a summit intended to promote Asia-Pacific regional cooperation, from an economic perspective.

The deal involves an investment in Russia’s second-largest forestry products business, called Russia Forest Products, while the Chinese/Russian fund is simply called the Russia-China Investment Fund. The investment means that Russia Forest Products will now be able to produce forestry products with higher values and of better quality.

The forestry business is allowed to fell some 4.5 million cubic metres of timber each year and controlled some 6.4 million hectares of forests under a long-term lease deal.

The news that the investment has taken place was welcomed by FRA, which advocates investment in forestry management projects – particularly sustainable ones, such as the Greenwood Management plantations in Brazil and Canada. “Investing in sustainable forestry schemes is one of very best ways to ensure that you not only see a great return on your alternative investment, but that you can help to reduce deforestation in some of the most vulnerable regions of the world,” commented Peter Collins, the analysis partner at FRA.

The returns seen by forestry investors over the past decade or so are often better than the average returns for those investing in stocks and bonds. In addition, the plantation projects run by Greenwood Management can help to produce charcoal for the steel industry in Brazil, which helps steel firms avoid using charcoal produced by burning native timbers.

“Sustainability is the key to forestry investments and anyone considering investing in forestry should look for plantation schemes that are run on a cycle system, so that older trees are cut down when new trees are being planted,” added Mr Collins.

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

AAA praises Forestry investment Advocate for Supporting Alternatives

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A recent article in The South African has attracted praise from (AAA for promoting the benefits of investing in timber.

Boston, MA, September 06, 2012 – A recent article in The South African has attracted praise from Alternative Asset Analysis (AAA) for promoting the benefits of investing in timber.

The article was based around an interview with Graham Rowan of Wealth Invest, who asserted that money really does grow on trees if you invest in forestry and timberland in the right way. He said that timber was his favorite ‘green‘ investment and added that there are a few tips to acknowledge before taking the plunge, but that healthy returns are easy to come by.

Firstly, Mr Rowan points out that timber investment has beaten inflation over the past 100 years by an average of 3.3 per cent. AAA’s analysis partner, Anthony Johnson, said that this is a particularly attractive trend during these times of high inflation and low interest rates of savings. He added that, depending on who you invest with, those interested in buying up forestry land can do so for a lot less money than in the past. For example, investments of less than $15,000 are needed to invest in the sustainable plantations run by Greenwood Management in Brazil and Canada.

Another factor to think about when considering forestry investment is the rate of growth for the species in your plantations or forestry project. The faster the growth, the quicker the returns and the less long-term the investment is. For those who want faster returns, investing in Acacia or eucalyptus is a good idea, for example. He also points out the location of the forests makes a difference on the speed at which they grow. He states: “UK forestry grows so slowly that you may find you are investing to benefit your grandchildren!”

Mr Rowan also recommends that investors look closely at any small print and check where they stand if they would like to exit the project early. Overall, though, he recommends forestry as a green investment option.

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

Business

FRA Welcomes Australian Carbon Forest EU Link-Up

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FRA have welcomed news that Australia’s carbon forests are being linked to the EU’s ETS to help encourage investment in the carbon offsetting tool.

Seattle, United States, September 4, 2012 — Forestry Research Associates (FRA) have welcomed news that Australia’s carbon forests are being linked to the EU’s ETS to help encourage investment in the carbon offsetting tool.

The move is also being greeted warmly by the country’s carbon offsetting pioneer, Greenfleet, which said that the change will bring plenty of credibility to its carbon forest scheme. Greenfleet CEO, Sarah Gipton, explained, “It brings greater simplicity to the scheme; and linking to the more established market means Australia will benefit from the EU experience and Australian carbon project developers can tap into a larger market.”

She went on to add: “We are confident that investment in Australian carbon forests that offer additional biodiversity benefits will continue to rise as liable parties build their carbon management portfolios.”

Ms Gipton issued a statement talking about the relatively new asset class of investing in carbon offsetting. She explained that most savvy investors will take the ‘portfolio approach when making investments to deal with the risks. This is the same as any other asset class – it’s always a good idea to hedge your bets with a diverse portfolio, claims FRA’s analysis partner, Peter Collins.

Greenfleet is a forest abatement organization that helps businesses to offset their carbon emissions by planting trees. FRA supports this kind of project and also investment in forestry via sustainable plantations, which can also help to businesses and individual investors to offset their carbon emissions – while making healthy returns.

“Investing in plantations through forestry managers like Greenwood Management, which runs plantations in Brazil and Canada, is a great way to give a little back while making your cash work harder for you.”

Forestry investment tend to perform better than stocks and bonds and the demand for timber and charcoal products is rising off the back of growing economies of India, China and Japan.

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

FRA Welcomed USA Today Endorsement of Timber Investment

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FRA has welcomed a new article published by USA Today predicting a boom in timber investment returns if the real estate industry returns to a strong position.

Seattle, United States, August 9, 2012 — Forestry Research Associates (FRA) has welcomed a new article published by USA Today predicting a boom in timber investment returns if the real estate industry returns to a strong position.

The housing collapse in the US brought with it a fall in timber prices. Now things are looking up again and, as a result, timber stocks are looking rather attractive once more, according to USA Today’s John Waggoner. Since timber futures prices’ lowest spot in early 2009, they have increased by an impressive 93 per cent. Although this is slightly less than the recovery in the Standard & Poor’s 500 index, the improvement in the real estate market indicates a good reason to buy up timber REITs.

In the past 12 months, new home starts have jumped by 23 per cent and the fact that housing is now a lot more affordable than the last time housing starts increased, suggests that the turnaround will last longer and be more notable this time, claims FRA.

The forestry investment advocacy group supports the USA Today article, claiming that timber REITs are very attractive, but that there are also other options for those who are interested in investing in timber. “We promote investment in sustainably managed plantations, such as those operated in Brazil by firms like Greenwood Management,” stated FRA’s analysis partner, Peter Collins.

These plantations allow investors to directly invest in a piece of forestry land for as little as $10,000, which is a lot less than is involved when buying forestry independently. Then, firms like Greenwood manage these plantations for the owners and start paying returns to investors as soon as money starts coming in from any mature trees on the entire plantation.

Mr Collins claims that this option mean that investors enjoy the diversification benefits of forestry investment, but also get to see returns sooner than they would through other direct investment routes.

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

AAA welcomes Expansion of Unique wine investment scheme

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A UK-based online wine investment firm has expanded into Australia and the US, in a move that has been welcomed by AAA.

Boston, MA, August 06, 2012 – A UK-based online wine investment firm has expanded into Australia and the US, in a move that has been welcomed by Alternative Asset Analysis (AAA).

The Naked Wine offering differs quite a lot from other wine investment funds, as customers can help to choose which small winemakers the firm invests in. They become ‘Angel’ investors to help these small and niche winemakers produce more wine, and they receive bottles in return.

These bottles can, due to their rarity, become quite valuable – making the whole process a realistic option for alternative investors looking to diversify their portfolios, claims AAA. The alternative investment advocacy group supports a wide range of alternative asset classes and claims that wine is fast-becoming a popular option for many people who want something tangible in return for their investments.

The latest move from Naked Wines will see the firm invest more than $7 million in independent US and Australian wine producers. The Angels commit to investing small amount each month and receive a discount off the regular price of the wines produced in return.

AAA’s analysis partner, Anthony Johnson, said, “The Naked Wines brand had a good way of engaging investors by encouraging them to get involved in social networking and discussion forums. The fact that they even have the opportunity to choose where the investments go is also a major perk.”

AAA claims that more and more people are becoming interested in alternative investments in response to the global economic crisis and the general volatility of the equity markets.

Forestry investment is one of the main areas of interest for AAA. It claims that investing in sustainable plantations run by firms like Greenwood Management in Brazil and elsewhere is an ethical option and one that can generate generous returns. Forestry investment also helps to boost habitat for wildlife, claimed 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

FRA Endorses Harvard’s support for Forestry Investment

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Harvard University’s investment manager has spoken out in favor of timberland investment as a way to make cash while investing in an ethical cause, in a move endorsed by FRA.

Bainbridge Island, WA, July 31, 2012 – Harvard University’s investment manager has spoken out in favor of timberland investment as a way to make cash while investing in an ethical cause, in a move endorsed by Forestry Research Associates (FRA).

Harvard Management Company’s chief executive, Jane Mendillo, spoke at the CNBC Delivering Alpha Conference in order to voice her support for investing in natural resources. This is according to a report in The Australian.

The Antipodean newspaper was particularly interested in the endorsement from Harvard as the timber the legendary university has invested in is growing in New Zealand.

FRA, is a research and analysis consultancy specializing in forestry investment. FRA’s analysis partner, Peter Collins, said, “We rarely hear from Harvard Management Company, but when we do, they often speak about their investment in natural resources and the gains they have made from this investment strategy,”

The company manages the not insignificant $32 billion Harvard endowment and purchased forested land measuring 170,000 hectares in central North Island in 2003. At the time, the forestry investment industry in New Zealand wasn’t looking good thanks to high export costs and a huge preference for Russian softwood in China. Ms Mendillo said that Harvard’s investment came at a good time, when forestry investment were less fashionable than they are now. “Natural resources is our favourite area and it happens to be a favourite area where we feel that we may have an advantage as an early entrant into the asset class, “ she explained.

Mr Collins added, “Harvard got a good price for their timberland as the investment was made before people learned what a great hedge against inflation and the strong returns timberland can generate over time.”

FRA supports a number of forestry investment projects and particularly investment in non-native plantations in Brazil through firms like Greenwood Management. “Investing in trees provides a great mid- to long-term option for risk-averse investors,” added Mr Collins.

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 Claims Report Shows More Support for Forestry Investment Returns

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FRA has said that further evidence to illustrate the potential returns involved with timberland investments has been published this week.

Seattle, United States, July 13, 2012 — The research and analysis consultancy is referring to a new report that shows that forestry investors putting their cash in Scottish forests last year, saw healthy returns. The JPD UK Forestry Index has reported that forestry investments in Scotland saw returns of 34.8 per cent in 2011, according to reports in The Scotsman newspaper.

“This kind of rate of return is very impressive and will prove an extremely attractive draw for anyone considering alternative investments going forward,” claimed FRA’s analysis partner Peter Collins.

FRA advocates alternative investments and, in particular, forestry investment as a means to generating good returns while ensuring that investments help to maintain forested areas safeguard the industry for generations to come.

The JPD Index was at its highest ever last year, with analysts claiming that this reflected the fact that timber prices and demand are rising off the back of the growing appetite for raw materials in developing economies, such as China and India.

The demand for timber in the UK has also grown off the back of a rise in the use of wood as fuel and the growing efficiency of the sawmill facilities in Scotland, which help to generate strong yields from timber harvests.

FRA supports sustainable forestry projects, such as the non-native plantations run by Greenwood Management in Brazil. This kind of project allows people to invest directly in timberland without having to wait until their trees mature to enjoy the returns.

“Forestry investment in growing increasingly popular as people want something tangible in exchange for their investments following the economic crisis,” added Mr Collins. “Forestry investments regularly outperform more traditional asset classes, including property, stocks and bonds, in terms of ROI.”

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

FRA welcomes New of Church of England’s Timberland investments

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FRA a US-based forestry investment research and analysis consultancy, has welcomed news that the Church of England has increased its exposure to timberland investments over the past 18 months.

Bainbridge Island, WA, June 01, 2012 – Forestry Research Associates (FRA) a US-based forestry investment research and analysis consultancy, has welcomed news that the Church of England has increased its exposure to timberland investments over the past 18 months.

The Church of England is one of the UK’s largest non-profit organizations in terms of money invested and it has been restructuring its investment portfolio, worth £5.2 billion, over the past year-and-a-half. It has moved much of its allocation into uncrowded, unconventional assets such has timberland.

FRA claims that the example is the most powerful demonstration of a general move towards alternative investments in the charity sector in the UK and abroad and a general move away from stocks and bonds and into tangible, ethical asset classes.

“It seems to sit much better with charities to invest in something tangible and ideally something socially and environmentally responsible,” claimed FRA’s analysis partner, Peter Collins. He added, “The equity markets are a volatile place at the moment and when money is as precious as it is to the charities sector, a low risk approach is vital.”

That’s not to say that good returns can’t be made from alternative investments, added FRA.

FRA is a keen promoter of timberland investments as an option that is not closely aligned with general economic trends and indicators.

Firms like Greenwood Management, which operate plantations in Brazil, offer individuals and group investors, such as pension funds and charities, the chance to invest as little as EUR 10,000 in timberland that is managed sustainably.

These kinds of projects are popular at the moment as timber demand is rising off the back of the growth of emerging economies that need timber to help expand their infrastructures. As well as providing timber as a raw material for construction the plantations also provide the booming steel industry within Brazil itself with sustainable charcoal.

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

Forestry Popular with Risk-Averse Investors claims FRA

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Environmental Finance has published an article outlining how fund managers are reporting a rise in interest in forestry investment of all kinds.

Seattle, United States, May 5, 2012 — Environmental Finance has published an article outlining how fund managers are reporting a rise in interest in forestry investment of all kinds. Forestry Research Associates (FRA) says that the future looks bright for forestry, as traditional investments continue to deter pension funds.

Timberland Investment Resources (TIR) was speaking at the Forestry, Sustainability and Biomass conference in London today. The delegate stated, “We have lived through extraordinary times for investors. And the fact is, forestry did what it said it would do on the tin.”

FRA claims that this sums up the attraction of forestry investment for many investors who have been burned by their stocks and shares after huge amounts were lost from markets overnight during the economic crisis. The ongoing uncertainty in the Eurozone region is a further cause for concern for many, who want to diversify their portfolios to protect them from risk.

“Forestry is a risk-averse option.” claims FRA’s analysis partner Peter Collins. He added, “Timber assets offers a stable option as they have continually outperformed equities over a number of years.”

FRA claims that another advantage is the fact that if the timber prices are low when trees reach harvestable size, investors are not forced to chop down their trees. Instead they can simply leave them growing for as long as it takes for timber prices to reach the desired level before selling. “Trees continue to grow, along with the potential ROI,” added Collins.

There are a number of ways to invest in timberland and forestry, explained FRA. One of the most popular among risk-averse investors is to buy up sections of sustainable plantations, which offer a tangible asset in exchange for anything from around EUR10,000 in the case of an investment through Greenwood Management, for example.

Greenwood Management runs teak and eucalyptus plantations in Brazil.

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

FRA welcomes Forestry Investment Program positivity

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Ghana, the Democratic Republic of Congo (DRC) and Burkino Faso have all given insights into their intended responses to the Forest Investment Program (FIP), claims FRA.

Bainbridge Island, WA, May 03, 2012 – Ghana, the Democratic Republic of Congo (DRC) and Burkino Faso have all given insights into their intended responses to the Forest Investment Program (FIP), claims Forestry Research Associated (FRA).

The research and analysis group said that reports from allafrica.com show that representatives from each of the three African nations have pledged to continue their support for the REDD+ scheme in exchange for funding under the FIP.

Speaking at the annual FIP pilot scheme meeting in Brazil, Burkino Faso’s officials said that the country maintains a strong political affiliation and support to reduce emissions from deforestation and forest degradation (REDD+). The country also pledged to improve synergies between the REDD+ work and other industries, such as agriculture and environment. It wants to invest in private sector forestry.

Meanwhile, both Ghana and Burkino Faso mentioned that they were finding management of stakeholders’ expectation a challenge.

The DRC said that it has made some headway in keeping track of investments under the scheme, through the launch of an online National REDD+ Projects register, which monitors the projects that are receiving the funding. However, it added that the private sector is still sceptical due to high taxes and complexities.

FRA’s analysis partner, Peter Collins, said, “We support the REDD+ program and are pleased to see that developing nations are still being rewarded for protecting their forestry industries for generations to come.”

FRA believes that schemes like the FIP and carbon trading programs help communities living in developing nations to realize and benefit from the value of standing forests. “This helps to reduce the reliance on non-sustainable forestry practices and underlines the benefits of managed forestry,” added Mr Collins.

Investors all over the world can do their bit to promote sustainable forestry and managed forestry by investing in plantation projects like those run by Greenwood Management in Brazil.

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