Thursday 9 June 2011

Timberland Launches Forestry Investment Fund

The Fund aims to provide UK and European institutional and professional investors with attractive real returns that have minimal correlation with other traditional asset-classes.

Registered in Luxembourg as a Specialised Investment Fund (SIF), Timberland Investment Resources (TIR) Europe's investment strategy is to focus on building a diversified global portfolio of timberland properties and related assets in Europe, the US and Latin America, as well as more niche market opportunities. TIR-Europe will target a total return of 8-10% per annum net of fees and operating costs, but prior to any investor tax.

Hugh Humfrey, Managing Partner of TIR-Europe, comments: “Our aim for the Fund is to generate above market returns on a risk-adjusted basis for its investors, while focusing on managing risk by building a diversified global portfolio of forest properties that generate cash flows and long-term asset appreciation.”

The investment team will operate with a disciplined and cautious style, underpinned by extensive economic research and forest biometric analysis to identify long-term trends and market inefficiencies.TIR-Europe places a strong emphasis on environmental stewardship and will manage all of the Fund’s investments in accordance with sound principles of natural resource sustainability.

Humfrey adds: “Forestry investments offer excellent inflation hedging characteristics and have generated a long history of stable investment performance consisting of both current income and asset appreciation. As a result, the asset-class tends to offer a great deal of flexibility from both a tax and cash flow planning standpoint, which makes it very compelling given the prevailing market conditions.”

The minimum investment in the fund is $2m and there is a 1.5% annual management fee.

Founded in 2010, TIR-Europe is a privately-owned investment management partnership specialising in forestry and related assets. It forms the European investment business of US-based Timberland Investment Resources which was founded in 2003 and is an independent forestry investment firm with over $750m under management.


Read more: http://www.ifaonline.co.uk/international-investment/news/2076624/timberland-launches-luxembourg-global-forestry-fund#ixzz1OmV4z9jl
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