“This is a Private Equity Fund being run on a hedge proposition basis to consolidate assets within the emerging markets on a project by project investment strategy,” explained the CEO of the Asia Renewable Resource Fund (ARRF), Andrew Steel. The fund is being launched by Treedom Investment, which is keen to ensure that people have access to investments into sustainable forestry in Asia.
FRA claims that investing in sustainably managed forestry and timberland projects in emerging markets is a good move for investors all over the world. Its analysis partner, Peter Collins explained, “Investing in sustainable forestry not only helps to safeguard the future of forestry for generations to come but also offer investors strong returns with a low level of correlation to other economic trends and the equity markets.”
“These are forestry investments made with due regard for people, communities, the environment and profit,” added Mr Steel.
Investing in trees can be a good option for a long term investment, as they simply grow in size and value if left alone for many years,. However, FRA is keen to point out that there are a growing number of opportunities that allow investors to start to see returns within a few years. The scheme run by Greenwood Management in Brazil, for example, allows investors to invest in existing plantations of non-native trees that are grown in a cyclical way, meaning that as soon as the first trees are mature, all investors start to see returns on their investment, despite the fact that it is also a direct investment model.
AAA is a research and analysis consultancy group specialising in timberland investment and sustainable forestry.
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.
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