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Pension Funds Looking to Timberland as Protection Against Inflation Claims FRA

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					Pension Funds Looking to Timberland as Protection Against Inflation
Claims FRA

Pension funds are increasingly putting their cash into timberland
investments, according to reports in the Financial Times and from
forestry investment research and advisory consultancy, Forestry Research
Associates (FRA).

Seattle, WA, June 23, 2011 -- Pension funds are increasingly putting
their cash into timberland investments, according to reports in the
Financial Times and from forestry investment research and advisory
consultancy, Forestry Research Associates (FRA).

FRA claims   that commodities are still popular, despite the current
volatility   prompted by high inflation rates – mainly due to the increased
demand for   raw materials in India and China. However, risk-averse pension
funds have   been looking for an asset that offers more stability and some
protection   against the effects of inflation.

Investment consultant Mercer claimed in recent report on the subject that
timberland investment offers “explicit opportunities” as a long-term and
sustainable investment for pension funds. Peter Collins, an analysis
partner at FRA said, “Investment in forestry usually involves putting
money in projects taking place in emerging economies, such as Brazil or
Costa Rica. Although these carry with them slightly more risk than some
investment in more established economies, they also offer tremendous
opportunities for gains.”

“Brazil’s economy went from strength to strength in recent years   and lots
of people made a lot of money by taking the chance and investing   there.
Forestry is big business in Brazil and sustainable projects like   those
offered through Greenwood Management have taken advantage of the   growing
natural resources market,” added Collins.

The global trade in timber is thought to be worth around one per cent of
the global GDP, or $200 billion, according to the UN Food and Agriculture
Organization. Mason Browne, the Director of Operations of Global Timber
Acquisitions at fund manager Four Winds Capital Management, said that
investing in timberland is a good options for those who want to diversify
their investment portfolios and spread risk: “It doesn’t trade at the
spot price of lumber. It also offers a low correlation with other asset
classes and a high correlation with inflation.”

Simon Fox, an alternative investment expert at Mercer, said that another
great thing about timberland investment is that the owner has the choice
as to when they sell their stock: “With timberland, you can control when
you take it to market. Unlike an agricultural commodity, which has to be
harvested, with timber you can leave it on the stump.”

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
206-316-8394
info@forestry-research.com
http://www.forestry-research.com

				
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Description: Pension funds are increasingly putting their cash into timberland investments, according to reports in the Financial Times and from forestry investment research and advisory consultancy, Forestry Research Associates (FRA).