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
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Bainbridge Island, WA 98110
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