Tag Archives: timberland

Business

Support for Timberland investment welcomed by FRA

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A recent article advocating the selling of gold and the buying of timber as an asset class, has been welcomed by FRA.

Bainbridge Island, WA, January 18, 2013 – A recent article advocating the selling of gold and the buying of timber as an asset class, has been welcomed by Forestry Research Associates (FRA).

The article, written by Carl Delfield, the senior analyst at Investment U, claimed that although gold has had a “good run” it is timber that is looking like the big winner in 2013 for those interested in alternative investments.

Mr Delfield bases much of his argument on the fact that the price of lumber has outperformed the S&P 500 over the past century and is much less volatile at the same time. Prices have risen by an average of 5 per cent per year and timber is less affected by wider economic trends. It is, therefore, an attractive proposition in the wake of the financial crisis, which wiped millions from certain stocks and shares portfolios over night.

This long-term performance, together with its surging prices and demand right now, is getting investors excited, claimed Delfield. FRA, a research and analysis consultancy specialising in forestry investments, claims that the US housing recovery and the ongoing growth in the Far East and India are largely to thank for the growing demand for sustainable timber.

“Sustainability is the key, though,” added FRA’s analysis partner, Peter Collins. “If you are going to invest in timberland, make sure its sustainably managed – so there is always new growth coming up to replace the timber being harvested.” FRA claims that this is not only the ethical option, but the most potentially lucrative as sustainable timber is far more likely to be used in large developments these days – particularly ones paid for by governments.

FRA supports ethical investment in eco-friendly projects, such as the plantations run by Greenwood Management. The plantations grow fast-growing non-native species, such as teak and eucalyptus.

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 agrees that Timberland is a good Long-Term Investment

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A recent article by Wyatt Investment Research published by Nasdaq.com discusses claims that timberland could be a better long-term investment option than gold. The report has attracted much support from FRA, a forestry investment analysis group that believes timberland is a strong and reliable long-term asset class.

Seattle, United States, November 14, 2012 — A recent article by Wyatt Investment Research published by Nasdaq.com discusses claims that timberland could be a better long-term investment option than gold. The report has attracted much support from Forestry Research Associates (FRA), a forestry investment analysis group that believes timberland is a strong and reliable long-term asset class.

The article from Wyatt Investment Research says that one of the main reasons trees are a great long-term option is that healthy trees physically grow by around 4 per 6 per cent in value each year. The article concludes that timber is indeed “better than the stock market as a long-term investment.” It then asks whether it can compare to a commodity like gold for long-term returns on investment.

Between 1991 and 2010, timberland investors saw returns averaging 11.16 per cent per year, with gold investors seeing gains of just 7 per cent each year during the same period. However, the article claims that people buy gold and timberland for very different reasons. “It’s right that people buy gold primarily to protect the value of their investments and protect their cash from wider economic factors, such as inflation,” explained FRA’s analysis partner, Peter Collins.

“However, timberland can offer these benefits as well, as timber tends to emerge from recessions and other economic crises relatively unscathed.”

One of the main benefits of investing in timber is the fact that the owner of the trees does not have to sell if conditions aren’t quite right when the trees reach maturity. If timber prices are low, they can continue to grow in size and in value until the market is just right. As a result, investing in timberland can be one of a least risky strategies during tough economic times, added Mr Collins.

FRA is a research and analysis consultancy focusing on forestry investment. It supports a range of forestry investment schemes, such as those run by Greenwood Management in Brazil and Canada.

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

Lumber ‘Treasure Hunts’ illustrate Demand for Timber, claims FRA

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FRA has claimed that the modern-day timber scavengers and ‘treasure-hunters’ prove that timber is growing in demand and value.

Seattle, United States, July 25, 2012 — Forestry Research Associates has claimed that the modern-day timber scavengers and ‘treasure-hunters’ prove that timber is growing in demand and value.

Reports into the increase in people searching for lost tropical rainforest timbers that fell to river and sea beds years ago, has prompted experts to use this as evidence of the ongoing demand for timber. A recent report in the Bangkok Post about the activity shows that there is a growing number of timber ‘treasure-hunters’ who search for long-lost logs of timbers no longer widely available due to logging restrictions.

Peter Collins of FRA, the research and analysis consultancy, said, “Many of these so-called treasure hunters are in operation in South-East Asia where a large number of exotic hardwood logs were lost during the period when logging of rainforests was more common and legal, back in the 1980s and 1990s.”

The article in the Bangkok Post described how the exotic lumber is in demand in Asia in particular, where it is used for the construction of everything from bar tops to pianos.

“The populations of many Asian countries are growing increasingly wealthy and want fine things made of beautiful timbers. However, the logging of many of these timbers is now illegal and the only way to get hold of them is to rescue logs that have been sitting on river beds for several years,” explained Mr Collins. He added, “The alternative, of course, is to source timber from sustainable plantations, such as those run by firms like Greenwood Management in Brazil and Canada.”

FRA supports sustainable timber plantations that allow investors to buy up sections of timberland while receiving returns from when the timber is harvested, processed and sold on. Timber demand in general is high at the moment, particularly in China, India and Japan, which is making timberland investment even more attractive.

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

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 claims PPF timberland panel shows alternatives are attractive

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In a move that further underlines the attractiveness of forestry investments, according to AAA, the Pension Protection Fund is establishing a dedicated panel for forestry and agricultural investments.

Boston, MA, USA, February 13, 2012 — In a move that further underlines the attractiveness of forestry investments, according to Alternative Asset Analysis (AAA), the Pension Protection Fund is establishing a dedicated panel for forestry and agricultural investments.

The fund, which is worth well over $10 billion, has issued tenders for managers to sit on the panel, which will be dedicated to making decisions about growing and selling timber and investing in agricultural land.

This is just the latest in a line of panels that have been set up to concentrate on investing in alternative asset classes, which are becoming much more attractive as the stock market remains volatile.

AAA is a supporter of timber investment and particularly investment into sustainable plantation projects in developing countries. Its analysis partner, Anthony Johnson, explained, “As well as providing investors with the peace of mind that only comes with making ethical investment choices, investing in timberland can be extremely lucrative.”

Average returns from forestry investments have easily exceeded returns from equities in the past decade or so. In addition, anyone investing in timber has the added benefit of being able to sit on their investment and watch it grow if the market is not good when it’s time to sell.

“If timber prices are low when an investor’s timber stock reaches maturity, they can simply hold onto it for as long as they wish, in order to sell it when prices recover,” added Mr Johnson.

“In the meantime,” he continued, “their trees will grow by a further eight per cent per year, adding to the value of the timber.”

Most plantation schemes, like that run by Greenwood Management in Brazil, for example, grow non-native, fast-growing species such as acacia, eucalyptus and teak, that are popular for specific purposes such as the manufacture of charcoal or in the construction of homes or for furniture making.

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