
Forestry investments are a proven asset class for institutional and private investors. The combination of value in a naturally growing commodity and the underlying land provides investors with a low risk asset creating long term capital appreciation in a sustainable and environmental way. Negative correlation to other assets and low volatility provides an optimum route to diversify a portfolio and reduce risk.
Demand for timber is expected to increase as both global population and incomes per capita both rise. Supply will continue to be under pressure as environmental constraints restrict harvesting and consumers increasingly demand timber from sustainable resources.
Alternative uses for the land, including sporting, leisure and conservation, combined with a finite but dwindling resource, are likely to see land values rise over time.
An established market allows investors the flexibility to select the appropriate age class property to suit their requirements for income or capital growth over a specified timespan and to manage or liquidate the portfolio in response to market movements or cash flow requirements.
COMPETITIVE TAX FREE RETURNS:
UK Forestry provides protection against all types of taxation, substantially increasing returns for top rate tax payers. Increment in the value of trees is free from tax.