FRA Praises Article Highlighting Forestry Investment Benefits

Top Quote A recent feature on forestry investment in SmartMoney Magazine has caught the eye of Forestry Research Associates (FRA) who is thanking the publication for bringing attention to forestry as an asset class. End Quote
  • (1888PressRelease) October 01, 2011 - Seattle, United States -- The article, by Brett Arends, talks about how forestry investment can be a great way to shelter money in more volatile economic times. He explained that timberlands have been a favorite among wealthy investors for years, as a result of its strong returns and lower risk, and the asset class is now within reach of all investors thanks to new direct investment opportunities.

    FRA, a research and analysis consultancy, said that timberland investments were typically available through funds where minimum investments would often run into hundreds of thousands of dollars. Now, through firms such as Greenwood Management, people can invest as little as $15,000 in a section of forest plantation land in Brazil, Canada or even Costa Rica. These kinds of investment opportunities allow investors to see returns within just a few years, rather than having to wait for trees to grow and reach maturity as all the money is ploughed into the sustainable model that delivers regular returns.

    Several larger funds are now putting more of their portfolio into forestry. The SmartMoney article cites Harvard University as a major investor in timberland. The author also claims that Jeremy Grantham, who runs investment firm GMO, has a large amount of his personal portfolio invested in timber. He reportedly once said that timber "has had a history of rising in all great equity bear markets," adding that the asset is "very safe: If the sun shines and it rains, the trees grow about on schedule."

    "Grantham is absolutely right on this," claimed FRA's analysis partner, Peter Collins. He added, "Forestry's low correlation with other assets means that it can withstand slumps that other asset classes simply will not survive, therefore offering a safe haven for money during volatile times."

    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
    Tel: (206) 316 8394
    E-Mail: info ( @ ) forestry-research dot com
    Web: http://www.forestry-research.com

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