Greenwood Management ApS has welcomed reports that fund managers are increasingly keen to invest in alternative assets, including forestry, which is facing a period of particularly healthy growth.
Copenhagen, Denmark, June 21, 2011 — Greenwood Management ApS has welcomed reports that fund managers are increasingly keen to invest in alternative assets, including forestry, which is facing a period of particularly healthy growth.
The forestry investment firm offers the chance to invest in existing plantations in emerging economies such as Brazil and Costa Rica. They are also managing sustainable plantations in Canada and are pleased to back claims that wood will be traded as a commodity, like other popular alternative assets, within a few years.
Chief Executive of Pöyry Management Consulting, Heikki Malinen, claimed back in May that the demand for timber from emerging economies like China and India will see the market for wood climb to a record high. He added that this will lead to higher prices, as demand in the EU alone is predicted to rise way above supplies by 2020. Pöyry Management Consulting’s President, Cormac O’Carroll, told delegates at the forestry investment industry seminar in London, “The scarcity of supply is making wood a valuable resource and we’re already starting to see it being traded like more established commodities.”
A spokesperson for Greenwood Management said, “As inflation continues to rise, so does the value of commodities, such as timber, gold, oil and real estate. We believe that the increase in interest in alternative assets such as these will continue as investors seek a longer-term option for their cash with values rising as a result.”
Greenwood explained that recent reports of the growing demand for biofuels in the East are also great news for forestry investors as the market for timber-based biomass is growing as a result. And it’s not just these emerging economies that will demand greater use of biofuels. UK energy bills, for example, are expected to double within a few years, claimed Unicredit, a bank that undertook analysis of the market. Its findings stated “According to our analysis, a typical UK energy bill could rise from the current level of £1,000 per year to over £2,000 per year by 2015. As investment occurs, bills could double every five years until 2020, in our view.”
Greenwood Management added, “These major increases in commodity costs, teamed with the lesser need for liquidity in investments, are driving fund managers towards alternative assets, of which forestry is a major growth area.”
Greenwood Management Aps
Omøgade 8, 2nd Floor
2100 Copenhagen Ø
Tel: 00 (45) 36 95 37 44