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International Forestry Investment Advisors |
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In April 2005, International Forestry Investment Advisors or IFIA was founded by Clark S. Binkley. To support with asset management and acquisitions Marc A. Hiller joined in 2006.
The organization searches for novel ways to earn higher returns from forestry assets while retaining their diversification benefits. It develops innovative investment strategies for investors and also creates specialized investment products. The investment strategies focus on neglected opportunities by investment managers. International Forestry Investment Advisors collaborate with other organizations to implement these strategies. In 2007 year end, the organization co-managed capital of over $500 million.
Timberland investment covers private-equity ownership of trees and forest land. These investments demonstrated a valuable component of mixed-asset portfolios. The returns for the 20-year period ending 31 December 2006 showed an average of 15.2%.
Emerging Markets Forestry Investments
The joint venture between IFIA and international private equity group, Global Environment Fund is the Global Emerging Market Forestry Fund, LP (GEMFF). The investment strategy of GEMFF is to provide more high risk-adjusted returns from timberland investments than are available in developed countries. These returns can be realized by -
- Investing where there is no investment which means returns should be higher than in developed countries.
- Investing in established plantations and productive land especially those by aid agencies or national governments
- Investment in solid-wood products manufacturing facilities
- Investment in human resources development and technological innovation
- Forest Stewardship Council (FSC) standard certification which can reduce risk and improve returns
Innovations in Forestry Technologies
Timber yields can be improved through technical innovation. Depending on the region and species, the yield can range from 1.3-3.1% per year. Development of management systems and improved genotypes are the fields on which investment focuses.
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