Forestry is a unique asset class. It is a low volatility investment which produces absolute returns over the longer term. Over the past century it has outperformed all the major stock indices.
Timber is one of only three commodities which have increased in price in real terms over the same period. The other two commodities are oil and gold.
Timber prices have increased steadily over the years and are not subject to the same political and economic influences which can affect other asset classes.
Unlike many asset classes, timber demonstrates very little correlation to other investments, but has a positive correlation to inflation.
Timber also has unique qualities, which makes it the building material of choice in many parts of the world. With the rapid growth in the global population, and the evolution of emerging markets into more developed economies, the demand for timber is only likely to increase still further.