Part five of our investment series takes a look at 4 of our specialist funds, which are part of our Add Ons Portfolio. These are the iShares S&P Global Timber & Forestry Fund, Invesco Perpetual Latin America Fund, First State Global Infrastructure & MFM Junior Oil Trust.
Firstly we will take a look at the I-Shares S & P 500 Global Timber & Forestry Fund. This Fund primarily invests in US companies with 52.49% in this Market. It has a number of significant holdings with Wegerhaeuser (9.26%) & Reyonier (8.35%) being the highest, both well respected companies in the industry. As a fund itself it has returned positive gains of 12.49% so far in 2012, with 12.5% in the last 6 months & 101.6% in the last 3 years. However it must be noted in the last year it has a negative return of 12.3%, which can be attributed to the US property Market slump of 2010.
So what the experts saying about the Timber & Forestry industry?
- Overall, analysts believe that within the coming decades, the demand for timber products will exceed supply, as Europe, Asia and South America continue to demand more & more to fuel their expansion & therefore pushing timber prices up.
- Positive feeling that the US property Market is recovering leading to increased construction and more demand for wood
- Data shows it is the lead source of renewable energy in Europe – with over half of the total demand in the Nordic & Baltic regions & 20% in Sweden, Finland & Estonia
- Don Miller of Money Marketing highlights the fact that timber has outperformed equities & that returns have averaged some 14% per year between 1987 & 2010 compared with 9.6% averaged for stocks as measured by the S&P 500 index.
There are a lot of positive feelings towards investing in Forestry & Timber as shown above, however due to the risk involved this is only really an investment for clients who are prepared to take a speculative approach.
Reeves Independent are currently researching different ways to invest in this sector!
Further details about how to access this fund & the Reeves Independent Wealth management service are available by calling 0191 281 9862 or e-mail email@example.com NOW for a FREE initial chat!