Global demand for tropical hardwood is increasing as the population of the developing world expands, demanding more timber for construction, paper products and biomass fuels. High international demand for teak has broadened the traditional teak supply base from natural forests in Asia to fast-growing teak plantations in Africa, Central & Latin America.
What makes it a great sustainable investment opportunity?
Long-term persistent growth and sustainable capital growth
Low to negative correlation with other asset classes provides diversification
Biological growth of trees provides timber price development independent of financial markets and the economy
A sound non-financial «impact» return in terms of CO2 sequestration and jobs creation
Strong long-term fundamentals for the teak market
Forestry investments correlate highly with inflation and therefore are effective investments to preserve capital
Ownership of real assets of land and trees creates flexibility to manage and optimize cash flows and costs