The unit will be renamed Evergreen Timberland Investment Management and will continue to manage timberland investments for institutions and high-wealth individuals.
Evergreen Timberland’s investment strategy will focus on three components of return:
- the natural growth of trees and forest expansion,
- land value, and
- timber prices
Natural growth typically contributes 65% to 75% of the investment return, meanwhile land value is relatively stable and may generate about 5% to 10% of the total return. Though timber prices can fluctuate based on supply and demand, they account for approximately 25% to 30% of the return.