Chung-Hong Fu: Managing Director Economic Research and Analysis DOWNLOAD (1.7Mb PDF) Timberland investment management professionals often find themselves working with investors who are focused on building their portfolio's exclusively with "core timberland" assets because they are interested in attaining "pure" exposure to the asset class. Such investors often have limited appetites for acquiring timberland that also [...]
Chung-Hong Fu: Managing Director Economic Research and Analysis DOWNLOAD (1.6Mb PDF) One of the first things investors learn about the timberland asset class is that it offers three primary sources of investment return: (1) biological growth; (2) timber price appreciation; and, (3) land price appreciation. In large part because of a popular article published in 1998 [...]
Chung-Hong Fu: Managing Director Economic Research and Analysis DOWNLOAD (2.6Mb PDF) Real assets have traditionally attracted investors because of their capacity to generate cash yields, like bonds, as well as their ability to generate long-term capital gains, like stocks. Within the real asset category of alternative investments, timberland often competes with farmland, real estate and infrastructure-focused [...]
Chung-Hong Fu: Managing Director Economic Research and Analysis DOWNLOAD (977kb PDF) Timberland investors pay attention to the United States housing market because it is the leading source of lumber consumption. Stepping back, as a timberland investment manager, we are managing a factory (the land) that is producing a product – either softwood or hardwood timber. [...]
Chung-Hong Fu: Managing Director Economic Research and Analysis DOWNLOAD (880kb PDF) When investors consider how and when to enter the timberland asset class, there are many considerations that must be weighed. In his latest white paper, “Capital Placement in Timber,” Chung-Hong Fu examines the benefits of vintage-year diversification, discusses the drawbacks associated with market timing, [...]
