Timberland Investment
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Timberland Investment
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This Fund Sees The Trees--And The Forest

This Fund Sees The Trees--And The Forest | Timberland Investment | Scoop.it
How do you profitably invest in a sustainably harvested forest while directing efforts toward clean water protection, flood control, habitat for fish and wildlife, soil building and carbon storage?

Industrial timberland is managed solely for the wood in the trees, but Ecotrust Forest Management, based in Portland, Ore., invests by putting its focus on entire forest ecosystems. It's creating markets around forest diversity by selectively harvesting trees rather than clear-cutting, and also selling everything from carbon credits and development rights to edibles such as honey or salal for floral bouquets.

This diversified approach to managing a forest renders the land more resilient, both ecologically and economically, said Ecotrust CEO Bettina von Hagen.

Since its inception in late 2004, Ecotrust Forest Fund I, with $30 million under management, had average gross returns per year through December 2012 of 10.6 percent compared to 8.17 percent during the same timeframe for the NCREIF Timberland Index. It won't update returns because it will be reopening the fund to investors in the next three to six months. The fee is 1.25 percent.

Ecotrust has raised $60 million for a second fund, which closed in December. It currently has 30,000 acres under management.
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Jack D Bridges's curator insight, July 16, 2015 12:23 PM

Consider a very mature, highly efficient market, within an established asset class. As time passes, the number of actors / investors grows, amid very positive secular trends which have helped lift returns over a long time-frame. 


Within this framework, all things being equal, one can expect lower future returns, as more investors crowd into the marketplace and compete for assets. 


So, how does one compete and deliver superior risk-adjusted returns in such environment? One way is to focus on a particular niche, and devote resources to developing new revenue streams--and this is exactly what EFM does as well as anyone. 


I'm not sure who Ecotrust hired as their CIO, but knowing a few people there, it is an unquestionably talented & ethical team. I wish EFM II the best of luck as they re-open the fund to investors...


JDB


Thanks to Sam Radcliffe for the find!

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Lyme, EcoTrust make social investing list

Lyme, EcoTrust make social investing list | Timberland Investment | Scoop.it

This annually updated list is a gateway into the world of impact investing for investors and their financial advisors, offering an easy way to identify experienced impact investment firms and explore potential investment options. The IA50 is intended to illustrate the breadth of impact investment fund managers operating today.


Happily, there are more than 50 top tier impact investment funds in the world -- which means not all are included in the IA 50. These 50 firms have been selected to demonstrate a wide range of impact investing activities across geographies, sectors and asset classes.


The IA 50 is not an index or an investable platform; rather, it is an information resource to begin research on the impact investing sector.

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