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Awatea Forest Fund – Latest Quarterly Results

The latest Awatea Quarterly report is out now with the Fund having completed its sixth trading quarter. 

Awatea Forest Fund now holds six properties across four regions taking the total effective area to 1,687.4ha. For Investors, the positive returns have continued, delivering quarterly returns of +3.48% and taking the funds returns since inception to 20.43%.

 You can find the full report below, which provides a detailed fund activity report and an update on Carbon and Timber markets.  

Awatea is a forest and carbon investment fund, targeting the ownership of 5,000 hectares of premium diversified forest assets, generating cash and capital returns through the sale of stored carbon, harvest of trees, and natural biomass growth. 

Awatea provides its investors the opportunity to own and take part in a large-scale and professionally managed forestry fund, generating real asset exposure to forestry and the long term outlook for wood products, as well, the New Zealand’s Emissions Trading Scheme for the recognition and monetisation of carbon stored is the funds forests.

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Considering Forestry for your investment portfolio?

Considering Forestry for your investment portfolio?

Building a diversified investment portfolio is key to achieving long term investment success while managing the risks associated with the investment assets. So where does a forestry investment like the Awatea Forest Fund sit?

Let’s review the benefits of a forestry investment:

A long-term investment with low volatility

Recent times have displayed first hand the impact of market volatility. Take equity and bond markets as an example, these assets tend to be impacted by a different set of market drivers, such as the impact of inflation and interest rates.

Forestry offers uncorrelated returns, with biological growth underpinning your investment, meaning your investment will still grow, even if the economy does not. Forestry is naturally a long-term investment, making it the perfect long-term store of wealth, ideal for intergenerational investing.

We are most interested in the outlook for timber consumption as a key driver of investment returns. With traditional drivers such as population growth and urbanization being met with advancement in wood technologies and a drive for renewable building products, World Bank forecasts a four-fold increase in global timber consumption between 2016 and 2050. Just look at the examples of multi-story developments converting to timber structures. Awatea strives to provide the best of it all, using a diversified mix of forest and carbon assets to generate cashflow returns while retaining those long-term benefits of forestry investment. 

Financially benefit from a climate conscious investment

Since the introduction of the Emissions Trading Scheme (ETS), eligible forests can monetise carbon sequestered by our forests. Awatea targets productive forests with the benefit of carbon, providing dual revenues that blend for optimal investor distributions and capital enhancement.

Forestry is recognized by the NZ government for its part to play in achieving our net emissions targets, namely carbon neutral by 2050. To achieve this, more forestry is required, as well, a strong and stable carbon market.  

The Awatea Forest Fund is ideally positioned, with a strong weighting of toward carbon eligible investments, with long-term forecasts presenting an average annual cashflow return of ca.13%* based on the funds existing assets. Awatea also offers a distribution reinvestment plan, allowing investors who aren’t focused on cash returns, to benefit from compounding reinvestment.

A real, sustainable and renewable investment

Similar to property funds, investing in forestry means you’re invested in real assets, with tangible ownership and connection to New Zealand’s primary industry, meaning even in a downturn your investments is protected by a physical and biological asset.

Forestry investors not only benefit from timber and carbon, but also the value of the land. Asset selection is key, with high quality and fit for purpose properties producing high quality logs in perpetuity.

Investors are increasingly aware of the impacts that heavy industrial companies are having on our planet, and this is changing the investment landscape. The environmental credentials of forestry are well established, acting as the earths lungs, absorbing and storing greenhouse gases while providing a sustainable way to build for our future.

We are serious about the environmental impact of our investments, through our forest investment and management activities we aim to promote greater biodiversity, cleaner waterways, soil conservation, wildlife habitats, as well, an underlying objective to create a positive climatic change.

Ready to add forestry to your portfolio?

Building a diversified investment portfolio is a key step to achieving financial sustainability. While we may be biased, forestry provides a great cornerstone investment that can be relied upon for generations to come. RDNZ. has been managing forestry investments for more than 50 years, managing more than $1 billion of assets for more than 3,000 investors.

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