Timber
Over the last decades timber has not just delivered relatively stable and attractive returns for investors, timber investments have also outperformed other asset classes over the last 20 years. Demand increases steadily, especially in Asia due to population growth and industrial expansion.
Investments in sustainable timber projects are not only attractive because of solid returns, but will also meet the requirements of high standards regarding corporate social and environmental responsibility.
Because of the low correlation to other asset classes timber investments also help to reduce the portfolio risk of investors. Besides environmental and ethical aspects and attractive returns one of the most compelling reasons to include timberland investments in a long/mid-term portfolio is the ability to enhance the risk/return characteristics of the total portfolio. In addition timber is an excellent inflation hedge and makes a good investment because its returns are equal to, or even better than comparable risk/return investments.
Since the mid 1980s, investments in forest have become increasingly attractive to institutional- and qualified investors looking for portfolio diversification and investments with competitive risk/return characteristics.