Why Invest?

Why consider forestry investment?

Forestry as an investment sits within the property area of alternative investments. However, it also is closely related to commodities due to the forest’s primary product of value, timber.

As a real asset for fund investors, forestry could be considered primarily attractive due to its risk diversification benefits, being uncorrelated with traditional equities.

However, in fact UK forestry has outperformed most traditional asset types gaining around 9% in terms of long term returns so can be said to both provide fund return enhancement along with diversification benefits.

There are number of key factors to consider:

In addition, forestry can function very well for institutional investors seeking ESG outcomes due to its ability to support the environment and biodiversity, provide employment in remote rural communities and the assurance of highly developed sustainability accreditation certification.

For any investor, whether individual or institutional, forestry investment is a long term illiquid venture and requires a degree of investment in time to understand the nature of the asset class and both how strong returns can be sourced and where there are risk factors to be understood.