As an asset class, forestry has been a very popular asset class over the past 10 years. Forestry investment has outperformed most equity and bond indices over the past three decades, including the S&P which it has beaten for over 100 years.
By including forestry investment in with stocks and other traditional investments, the stability and the overall investment performance of the portfolio can be improved.
The main benefits of this green investment are:
- The ability to directly invest in forestry
- Minimal capital requirement
- Professional management
- Real diversification from stockmarket investment
Those who invest in trees enjoy:
- Effective inflation hedge
- Minimal correlation with traditional investments
- There are options to adjust the length of investment (harvest) to take advantage of current market conditions
- Growth is predictable
The Forestry Unit Model
The Greenwood Management forestry unit model has been especially created to allow investors with as little as €10,000 to directly invest into forestry – providing affordable green investments for everyone. Those who directly invest in forestry find this route more satisfactory than other timber investment options, including investing in timber company shares.
This is because this model is able to avoid several other influencing factors, including management decisions, that have a direct bearing on stock prices and investor returns.
The model allows investors to directly invest into forestry or agroforestry projects that are already operational, without any requirement to put up a large (€500,000 or more) investment stake.