A Natural Complement to Diversified Portfolios Beyond Forestry offers a unique investment proposition, a bridge between the worlds of finance and sustainable agriculture. We focus primarily on producing and brokering teak, a highly prized wood for which the value continues to increase. As we manage every aspect of growth and harvest with painstaking control, our investors need only reap the rewards.
Timber Investment Properties
While the basic concept of investing in timberland has existed for centuries, more recently discovered are the benefits the asset class can bring to modern institutional portfolios. Some of the world's largest and best-known institutions invest a portion of their portfolios in timber, for a number of compelling reasons:
• Timber produces uncorrelated returns to other asset classes: 75% of the investment
returns from timber come from the biological growth of the trees, a force of nature that
is unaffected by market and economic conditions. For this reason, timber can help
investors achieve further diversification in their portfolios.
• Timber offers an attractive risk/return profile and minimal volatility: The performance of
the NCREIF Timberland Index since its 1987 inception is evidencethat timber produces
relatively high average returns (higher than bonds and most equity classes) with
relatively low volatility (lower than most equity classes)
• Timber is a natural inflation hedge: Unlike financial assets, timber tends to perform well
during periods of rising inflation.
• Timber demand is growing and supply is decreasing: International trade in forestry
products continues to grow as populations increase and consumers improve their
standard of living. Meanwhile, supply is under pressure as environmental constraints
restrict harvesting from unsustainable resources.
• Timber is a socially responsible investment: Sustainably managed forestry projects
improve the land, protect wildlife habitats, and provide employment, while counteracting
the harmful environmental effects of unrestricted logging.