In turbulent political and economic times, many investors are attracted to physical, tangible assets that promise some sort of protection against inflation, upheaval in the financial system, or political change (or often, all three at once). Gold is one such “real asset”; property is another. But while most of us probably have some exposure to property, and many MoneyWeek readers will already own gold, there’s one “real” asset you perhaps haven’t considered – forestry.
“Investors like the fact that it is asset backed, low volatility and uncorrelated to mainstream listed equities and bonds, which makes it an excellent source of diversification,” says Anthony Crosbie Dawson, an investment manager at Gresham House, owner of FIM, the country’s biggest forestry manager. “Whatever else is going on in the world, whether it’s Trump or Brexit, these trees go on growing and therefore adding more value.”
Gresham House plc (LON:GHE) is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies.