AAA highlights article backing timber investments

Top Quote A recent column in IFAonline has been identified by AAA as a piece that will help to bring forestry investment, and alternative investment in general, further into the mainstream. End Quote
  • (1888PressRelease) November 24, 2011 - Boston, MA, USA -- Poor interest rates and rocky stock markets have resulted in a great number of investors turning to asset classes they may not have previously considered in the search for better returns. As a result, many are looking to trees as a less risky investment strategy. IFAonline writer, Edward Daniels, comments that timber now holds an annualized rate of return for investors of 10.4 per cent.

    He also claims that investing in forests is low-risk when compared with equities, or even property for that matter. Anthony Johnson, an analysis partner at alternative investment advocacy group, AAA, agreed with Mr Daniels' article and added that forestry is catching on as a lucrative and ethical choice. He said, "Although forestry investment has delivered great returns on average over the past decade, investing in trees is also increasingly attractive as an ethical choice."

    "Encouraging sustainable forestry by investing in managed plantation projects in developing countries, such as Brazil, through firms like Greenwood Management, allows people to contribute to the fight against illegal logging," he added.

    Mr Daniels' article focuses on several factors that make investing in trees an attractive prospect. He asserts that timber prices have increased and decreased over the past few years, but that they have generally performed better than any other commodity in the past 100 years. He adds that the fact that trees physically grow is an obvious reason to invest, adding a typical 10-15 per cent onto the crop value.

    Mr Johnson added, "Risk-averse investors looking to invest in a tangible commodity that is likely to perform better than the equity markets should put their cash in timber and watch their investment grow."

    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.

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