LOW RISK AND STABLE RETURN
Forestland has the advantage of generating continuous asset volume increases through biological growth. The asset class is generally considered low-risk and allows for a diversification of existing portfolio risks by decreasing the exposure to and correlation with general risks encountered in financial markets.
Forestland has for generations been a popular investment alternative for investors aiming for low risk and stable returns. This has been especially true in places such as the Nordic countries where owning forest property is regarded as one of the best of ways of safeguarding wealth for future generations.
Investing in a Forestland fund can also improve the environmental and sustainability profile of an existing investment portfolio. Timber is an effective carbon sink as well as being a renewable, natural source of building material and raw material for many industries. Increasing volumes are also being used as biomass for carbon neutral energy production in many European countries.