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Research and White Paper

Timberland investing and the promise of carbon markets

Key takeaways

  • Timberland has long been hailed by institutional investors for its merits as a portfolio diversifier with attractive risk/return characteristics: It can offer dependable cash yields, inflation protection, and low correlations with mainstream financial markets.
  • Forests represent the lungs of the planet, and a growing and increasingly broader base of demand is likely to strengthen forest property values as the emergence of voluntary carbon offset markets reshapes timberland market dynamics.
  • Rising carbon prices will open new strategic opportunities for timberland investors, and we believe those opportunities might not be fully appreciated by the market at this time.
CATEGORIES: Thematic Investing Thematic Investing: Forestry & Timberland