"We do not inherit the earth from our ancestors, we borrow it from our children".
~Native American Proverb
The Sustainable Forestry Funds
Asset Operator
The funds work with a number of service providers and asset operators.
Forestry
Investments in forestry have long been seen as a sound hedge against inflation and historically have performed well when matched against other asset classes. In addition, forestry demonstrates a low correlation with equities and fixed income making it a valuable component to a well-diversified portfolio. Returns are mainly driven by the physical growth of trees, regardless of the prevailing economic conditions.
The funds we manage plant and grow many of the finest species of exotic tropical hardwoods in the world, in the rainforests of Brazil, Costa Rica and Malaysia, with further expansion planned in other countries. Cultured hardwoods grown on commercial plantations help reduce the pressure on the world's natural rainforests, which are threatened by illegal logging. The funds’ policy of sustainable rotation, where once trees have been harvested new ones are planted to replace them, ensures a continuing sustainability.
Agroforestry
Agroforestry is the combining of traditional forestry and agricultural processes to achieve maximum land productivity. During a forests early development, there are many opportunities to interplant (called interpolation) various crops between the trees. This interpolation results in crop yields, feeds the nutrients into the soil and improves the development of the forest.
As the trees grow and produce a canopy, this reduces the light to the forest floor providing perfect conditions for other crops. Agarwood, one of our core forestry species grows well in the shaded areas, and develops into a mature forest. Other interpolated crops include maize, sugar cane, pineapple, bananas, mangos, peppers, chillies, lemongrass and many others with readily available local and export demand. Maize plantations are both commercially and environmentally beneficial and create further ethical investment opportunities.
Funds
The funds we manage invest in many countries throughout the world, all based on similar project business models where the traditional forestry programmes run in parallel with agroforestry projects and growing crops that sustain local markets. These activities are carbon emission efficient too. The fund only grows well-known crops with a global market value and performance history. Although there is no globally recognised SRI certification, we believe that the funds we manage are SRI compliant. The local communities are provided with housing, schools and medical centres making these products amongst the deepest green investments available. The fund produces returns to investors as well as ensuring that communities are significantly incentivised.
We are also launching a US based timberland fund in 2010. This is a Cayman based closed ended vehicle.
Information
If you would like to know more about our funds, please contact us at sff@msscapital.com
Click here to access the Data Room for the SFF.