Tag Archives: timber investment

Business

FRA welcomes Timber Investment Endorsement

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FRA has welcomed a recent endorsement of timber and forestry investment from Adam Waldman of GreenWorld, through an article written for Tecnorati.com.

Bainbridge Island, WA, December 07, 2012 – Forestry Research Associates (FRA) has welcomed a recent endorsement of timber and forestry investment from Adam Waldman of GreenWorld, through an article written for Tecnorati.com. He points out that, while many people may not have thought about timber as an asset class option before, institutional investors are starting to see the potential in timber and individual investors should too.

Mr Waldman gives the example of how Harvard University is investing large amounts into forestry and timber, along with a major Russian and Chinese joint venture, which has recently decided to invest $200 million in the asset class.

FRA, a research and analysis organisation specialising in timber investment, has welcomed the article and backs Mr Waldman’s claims that forestry investment can provide a very effective hedge against inflation. He even points out that timber can act as a more affordable hedge than precious metals as timber prices follow general price trends, in much the same way as gold and silver.

As well as this benefit, he also points out the returns on timber investment have been very good over the past decade, outperforming stocks and shares returns by a considerable margin. FRA’s analysis partner, Peter Collins, added that forestry also provides a very good means of diversifying a portfolio against risk at a time when the stock market remains extremely volatile.

“If your trees reach maturity but timber prices aren’t that great, you can simply leave them growing and watch your asset gain value in front of your eyes, ready for a market upturn,” stated Mr Collins, In this way, timber investment is a relatively risk-averse investment, claims FRA.

FRA supports a number of forestry investment schemes all over the world, including Greenwood Management’s sustainable plantations in Brazil. These offer individuals the chance to invest in their own section of timberland for as little as $15,000.

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

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

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

FRA welcomes Timber investment article from Pictet-Timber head

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FRA is welcoming an article by Pictet-Timber fund co-manager Gabriel Micheli in Investment Week, giving tips to anyone considering investing in timber.

Bainbridge Island, WA, May 02, 2012 – Forestry Research Associates (FRA) is welcoming an article by Pictet-Timber fund co-manager Gabriel Micheli in Investment Week, giving tips to anyone considering investing in timber.

Mr Micheli is keen to point out the potential returns that can come about as a result of opting for timber investments, which will be underpinned by real growing demand for timber products in emerging economies such as China and India.

He said that wise investors are “waking up” to the environmental “megatrends” in the market. These include the realisation that growing forests can provide communities with income as they provide potential for carbon trading arrangements. As a result of these arrangements, developing countries can make money from developed nations through carbon trading. This is possible because trees absorb huge amounts of carbon dioxide from the air and therefore provide one of the most cost-effective means of reducing carbon emissions.

Mr Micheli added that investors are regularly seeing their returns from timber investment exceeding returns on stocks and shares investments. He points out that between 1990 and 2011 the NCREIF Timberland index returned 10.7 per cent each year. He claims that this shows that timber has a “key role” to play in any portfolio that is diversified against risk.

He claims that the demand for timber is coming from the nations that are desperate to get their hands on raw materials to continue their housing and infrastructure developments. At the same time, supply is not keeping up with the pace, which will drive prices up.

“Along with Mr Micheli, we are confident that timber prices will rise along with demand in the coming few years,” stated Peter Collins, the analysis partner at FRA, a research and analysis consultancy specialising in forestry investment.

He added, “Investing in sustainable timber growth, through firms such as Greenwood Management and Pictet-timber fund can provide careful investors with the chance to make a health return form an ethical investment –something that is not that easy to come by.”

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 Australian investment in Timberland

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AAA has reported that a high profile institutional investor in Australia has invested heavily in forest land.

Boston, MA, April 24, 2012 – Alternative Asset Analysis (AAA) has reported that a high profile institutional investor in Australia has invested heavily in forest land.

QIC’s Alternative Beta Fund has invested heavily with US based forestry timberland firm Molpus Woodlands Group. The investment involves the fund buying up some 42,000 acres of forests that will be grown sustainably and harvested at a profit some time in the future.

The investment is part of the QIC Alternative Beta Fund’s goal to invest a much as $233 million in alternative asset classes including timber, commodities, infrastructure and insurance-led securities.

AAA supports alternative investment of all kinds – but particularly ethical investments and forestry investment specifically. Its analysis partner, Anthony Johnson, said: “We are always happy to learn of major institutional investors putting their cash into alternatives, and particularly into forestry and timberland.”

Timberland has become an increasingly popular investment choice in recent years as it is far less volatile than equities and has regularly outperformed stocks and shares. It is also seen as a less risky asset class at a time when traditional investments have proven extremely volatile.

QIC’s head of Alternative Investments, James Dick, said, Timber has added significant value to our client portfolios in the past and we believe that it will continue to do so in the future.

“Timberland is an important asset class for QIC, as we like the low volatility, low correlations to equities and built-in inflation hedging characteristics that these investments provide. Timber has added significant value to our client portfolios in the past and we believe that it will continue to do so in the future.”

AAA supports a large number of timber investment funds and direct investment firms. Investors who want a tangible investment for their money often, like QIC, opt to buy up sections of plantation land or forests. Firms like Greenwood Management run plantations in which individuals can invest.

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

Business

AAA welcomes timber investment article

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An article in Money Morning, which talks about the benefits of investing in timber during economic downturns, has been welcomed by AAA.

Boston, MA, USA, February 03, 2012 — An article in Money Morning, which talks about the benefits of investing in timber during economic downturns, has been welcomed by Alternative Asset Analysis (AAA).

The alternative investment advocacy group claims that Don Miller’s article makes some very important points about how investing in timber, and in alternatives in general, can help investors during difficult financial times.

“Miller talks about the fact that this is a real, tangible investment, that you can count on to grow,” stated AAA’s analysis partner, Anthony Johnson.

As well as pointing out the average 14 per cent returns generated by timber investments in the period between 1987 and 2010, Miller’s piece also underlines the general consensus that timber demand is set to rise.

The United Nation’s Food and Agriculture Organization, for example, forecasts that demand for wood should double by 2050, despite emerging trends such as paper recycling. The growth of economies like China and India is promoting this major growth and Western investors are reaping the benefits.

The demand will also be promoted by the growing use of wood as a renewable fuel source, and our use of timber as a building material will also increase as you reliance on man-made, unsustainable materials cools off.

AAA’s analysis partner, Anthony Johnson lent his support for Miller’s arguments, adding “Investing in timber offers great protection against inflation and a dependable source of income whenever you need it.”

“The great thing about buying trees is that if the timber prices aren’t doing so well one year, you can sit tight and watch your investment physically grow bigger until you are ready to sell.”

AAA claims that something this measurable and tangible is attractive at a time when many are growing increasingly uncertain about investing in the stock markets. AAA supports projects run by firms like Greenwood Management, which offers investors the chance to buy up sections of sustainable plantations in Brazil.

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

FRA highlights Money Morning article as a ‘Great place to start’

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A new report on the benefits of timber investment in Money Morning, has attracted attention and praise from FRA.

Bainbridge Island, WA, February 01, 2012 – A new report on the benefits of timber investment in Money Morning, has attracted attention and praise from Forestry Research Associates (FRA).

The research and analysis consultancy has highlighted the article, written by investment writer Don Miller, as “A great place to start your research if are considering investing in forestry.”

Mr Miller lists the numerous benefits of opting for a timber investment, arguing that the option is a low-risk strategy with better returns than most, or even all, traditional asset classes. In fact, Mr Miller states, “Investing in timber has proven to be more profitable – and less risky – than any other asset class for almost 100 years.”

According to figures from The Campbell Group, cited in the article, timber returns have averaged 14 per cent each year between 1987 and 2010. In addition, the returns on timber are a lot less volatile than the returns on equity investments, according to the figures.

FRA supports the claim that timber investments are a good idea when the economy is struggling, as it holds its own while other asset classes falter. An example given my Mr Miller is that of the Great Depression, during which timber prices increased by 233 per cent, while stock market values tumbled by 70 per cent.

“Although the effect during the current downturn will not be felt quite as strongly as this, there are several features of timber investment that makes it attractive at times like these,” claimed Peter Collins, FRA’s analysis partner.

One of the best reasons for investing in timber is the lack of pressure on when the investment should be cashed in, Claims FRA. When the tree reaches maturity, if timber prices aren’t great, you can simply hang on in there and watch your asset grow even further. “Most timber-grade trees grow an average of per cent per year – which means that every year you don’t cut them down, they’re worth about eight per cent more,” explained Miller.

Firms like Greenwood Management offer great deals on timber investments, through plantation schemes in Brazil and Canada. Initial outlays needn’t be more than around $10,000 and investors will get a more diverse portfolio in exchange.

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