FRA: Saints latest to direct investment towards forestry

Forestry Research Associates has lauded the actions of the Scottish American Investment Company which has announced its diversification from purely stocks and shares into forestry investment.

The firm, which is known as Saints, is the latest of a procession of major investment firms to choose forestry investment as a way of diversifying funds.

Saints now has a far more diversified portfolio than many of its rival funds, with interests in debts, real estate and forestry. FRA’s analysis partner, Peter Collins, stated, “The decision to opt for more alternative investments is a wise move from Saints. Their fund is much less vulnerable to the variations in the equity markets, which, from recent experience, could make a fund considerably more attractive to investors."

Returns for investors are high and risk is lower than for similar products elsewhere. FRA explains that investing in forested land comes with minimal risk, as if the trees are worth less when they are at maturity, investors can simply hold onto them until timber prices rise. “In the meantime the trees continue to grow of course,” added Mr Collins.

FRA encourages investment in renewable forest schemes, such as the plantations scheme run by Greenwood Management in Brazil. Mr Collins added, “This investment opportunity is popular as it offers a direct investment opportunity, which means investors actually own a section of forest and will receive the value of the timber once fully grown.”

Figures also show that forestry investment can often result in better returns than stocks and shares can offer.

The news of the Saints’ decision to invest in alternatives follows news that several major pension funds are also opting to diversify into more alternative assets classes, such as precious metals, commercial property, forestry and even antiques and art. The move towards less emphasis on equities comes in response to pressure from investors who do not want to risk losing large amounts of money on stock market crashes.

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
(206) 316 8394