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Forestry Investments

Forestry investments, long focused primarily on developed markets, have become competitive over time, and forward-looking returns have moderated or declined. Many investors are open to a more diverse geographic and species mix to achieve a balanced portfolio and improved risk adjusted return.

Given the increasing demand for wood and the growing commitment to better manage the world’s natural forests, forestry continues to offer attractive investment opportunities. Our global team balances our industry knowledge with our local presence to seek investment opportunities for investors interested in owning new or existing forestry assets.

Four principles guide our strategy

Our investment strategies and integrated management style are focused on four core principles:

Construct a diversified portfolio. Our knowledge of traditional timberland and plantation markets, along with our skilled professionals and global experience, allows us to offer investors a more globally diversified portfolio.

Focus on improved tree growth. Tree growth provides the most reliable source of forestry investment returns. Excellence in growing trees through use of the best plant material and active forestland management strategies is central to our investment strategy.

Grow trees for growing markets. Our experienced timber investment managers track changing demand forecasts in developed and emerging markets, and use that knowledge to identify and capture market opportunities.

Manage risk. Our commitment to environmental, social and governance issues, along with sustainable management practices, is at the core of how we manage forestry assets.

Need more information on timberland investing? Click here to download our primer.

Investment benefits attract investors

Institutions and wealthy individuals have been investing into timberland for current income and capital growth for many years. The traditional rationale for these investments has been:

  • Produces attractive risk-adjusted returns
  • Provides a good hedge against inflation
  • Preserves capital
  • Provides a low correlation with other assets
    • Commercial Real Estate: 0.00
    • Corp Bonds: 0.01
    • Russell 3000: 0.26
    • S&P 500: 0.26
  • Improves risk efficiency of a mixed-asset portfolio (i.e. high apparent alpha, low beta)
  • Can be a sustainable, environmentally positive investment

To learn more about forestry investments, download Timberland Investment: Why, How, When and Where?

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