Forestry Investment – A new fund is to launch that will give investors the chance to profit from timber assets.
The Pictet Asset Management forestry investment fund is to be equity based. It will open on September 17th.
Pictet says its approach combines the liquidity of a conventional investment fund with the opportunity for investors to profit from the investment characteristics of the timber asset class.
The new vehicle will be co-managed by Gabriel Micheli, Christoph Butz and Philippe de Weck. Micheli said: “We believe timber is the quintessential long-term investment. Its biological growth is steady and continues irrespective of macroeconomic conditions and traditionally its returns have been positively correlated with inflation, making it an effective long-term inflation hedge, and a potential portfolio diversifier.”
The fund is available to private banking, institutional and retail investors in many countries across the globe, including the UK.
Joe Randall of forestry investment firm, Greenwood Management Ltd, commented: “This comes as no surprise to us. Commodities in general have been performing exceptionally well over the last year, and forestry has shown particular resilience. I think we will see more forestry funds being launched in the near future.”