According to media reports, more than 900 institutional investors spanning 25 countries and with US$21 trillion worth of financial assets to invest, have revealed in an annual survey that the two issues they are most concerned about are high market volatility and low returns.
Of those who responded to the survey, drawn up by Fidelity Investments, 30% indicated that low ROI worried them the most, whilst 27% cited volatility as their prime concern.
Derek Young, vice chairman of Fidelity Institutional Asset Management and president of Fidelity Global Asset Allocation said, “Expectations that strengthening economies would build enough momentum to support higher interest rates and diminished volatility have not borne out, particularly in emerging Asia and Europe.”
Political changes in both Europe and the United States are, naturally, influencing investors decisions regarding their portfolios – especially those looking to the long-term in particular. Whether investing as a pension provision, or as a means to fund their growing family’s educational needs, more investors are now looking to sustainable agroforestry products to ensure they are investing wisely and efficiently.
Money doesn’t grow on trees, but it can grow from them, and investing in forestry continues to march onwards as the popular choice when considering portfolio diversification, offering a low-risk, high-return solution to dissatisfied, exasperated investors.
Historically, forestry investments have enjoyed strong returns and are considered to be the ultimate ‘green’ investment; a proven asset class whereby 65-75% of returns are driven by biological growth, providing long-term capital appreciation over time.
A GWD Forestry spokesman had this to say, “Three of the world’s largest net forestry importers are China, India and Japan; bad local practices in the first two ensure that this demand will be maintained for the foreseeable future. Asia’s demand will continue to rise as its wood deficiency worsens. The outlook for demand for construction is good: in Japan, new house building has resumed; the larger American housing market continues its gradual recovery. All excellent, tangible reasons that incentivize investors considering adding agroforestry to their portfolios.”