Why Invest in Forest?
Forests as an asset class boast investment characteristics that are attractive, whether the investment is part of a portfolio or stands alone. Forest investments also offer favorable returns, including a substantial cash flow contribution.
The investment benefits of the forest asset class are even more pronounced when forests are included in a portfolio with traditional asset classes, due to generally low correlations with other asset classes.
IWC conducted an asset allocation study that analyzed the benefits of including forest in a diversified institutional portfolio. The study concluded that the inclusion of forest would greatly improve the efficient frontier as shown below.
