Abstract
Timberland is seen as a long-term investment that has recently received increased institutional investor attention in many countries and potentially provides added value in a mixed-asset portfolio. Using the National Council of Real Estate Investment Fiduciaries (NCREIF) timberland series, this paper analyses the risk-adjusted performance and portfolio diversification benefits of timberland in the United States over the period of 1987-2007. Timberland in the US. is seen to have been a strongly performed asset class with significant portfolio diversification benefits over this period, with a significant portfolio role separate to that of real estate. However, recent years have seen reduced risk-adjusted returns, with some loss of portfolio diversification benefits of timberland with stocks and real estate. Global drivers are likely to see increased future demand for timberland investment.
| Original language | English |
|---|---|
| Pages (from-to) | 95-106 |
| Number of pages | 12 |
| Journal | Journal of Real Estate Portfolio Management |
| Volume | 15 |
| Issue number | 1 |
| Publication status | Published - 2009 |
Keywords
- assets (accounting)
- capitalists and financiers
- economic aspects
- hedging (finance)
- investments
- portfolio diversification
- portfolio management
- timber