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An Asset Standing the Test of Time: Some investors are seeing the forest for the trees
There is one investment that stands tall in all economic environments — and sometimes even produces significant yields.
Timberland investments returned 10.2 percent in 2014, up from 9.8 percent the year before, according to the National Council of Real Estate Investment Fiduciaries. The Forest Investment Associates’ website put it this way: “Even during the most difficult economic times, trees grow, compounding in both volume and value.”
The strength of timberland investments is something that Peter Mertz, CEO of Global Forest Partners, knows well. GFP has been investing on behalf of institutional investors for nearly 30 years. One of the oldest and largest forestry advisers, GFP invests globally, currently focusing on Australia, New Zealand and Latin America with investments in softwood and hardwood, as well as high-value species such as teak, and a number of value-added assets.
The company invests in purpose-grown forests, or pl