White Paper "Real Assets - Investments in Timberland"

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Co-Founder & Spokesperson of Aquila Capital Concepts GmbH

7 Professional Article

The majority of institutional investors plan to reconsider their own asset allocations to ensure the commercial viability of their portfolios. Consequently this means that, inter alia, institutional investors are investing increasingly in real assets. More than ever, institutional investors require tailored advisory, financial and investment solutions.

Investments in timberland are particularly attractive to investors looking for a low overall risk. Since institutional timberland investments were first made available in the United States at the beginning of the 1980s, the volume invested in this asset class has risen steadily. The assets under management (AUM) of Timberland Investment Management Organisations (TIMOs) have doubled in the last ten years. TIMO is an umbrella term for professional providers of timberland investments, who invest mostly in the asset class via funds and whose management services sometimes range from fund management to the management of timberland itself. With over US$ 120 billion in invested capital, timberland has developed into an internationally established asset class for institutional investors1.

Institutional timberland investors from the United States and Europe are predominantly pension funds, insurance companies, foundations, family offices and church institutions who value the sustainability aspect of this asset class but also the composition of the returns and the risk profile.

This paper provides an overview of the timberland asset class in the context of an institutional portfolio.

  • Quellen:
  • 1 IWC (International Woodland Company), Global Timberland Investable Universe, 2009