The International Forestry Fund is a global forestry fund which acquires land for plantation forestry and also acquires existing forests which it manages in a socially responsible manner to achieve a target growth rate of between 5% to 9% per annum.
Why Invest in Forestry?
- Global demand for timber continues to grow faster than supply can meet. And much of the world’s current timber supply comes from unsustainable sources such as South American Rainforests and tropical rainforests in South East Asia
- Forestry has a low correlation to equity markets and bonds especially when it is unleveraged
- Timber volume from cultivated plantations will need to increase to meet growing global demand for this completely renewable and basic raw material required throughout the world in a huge variety of industries from construction to energy, fencing to packaging, bio-fuel to furniture
- Plantation forests greatly reduce pressure on natural rainforests and protect millions of acres of previously threatened rainforest thus helping to reduce the effects of global warming
- Forests are also a major store of carbon as they sequester Carbon Dioxide from the atmosphere, thus mitigating global warming and the effects of climate change
- Forestry investment provides stability and is largely immune to stock markets as well as providing an excellent hedge against inflation. As trees grow their timber volume and, therefore, value increases
- Trees grow at a highly predictable rate irrespective of economic conditions