{"id":1148,"date":"2021-04-21T16:43:32","date_gmt":"2021-04-21T14:43:32","guid":{"rendered":"https:\/\/www.evergreenholdings.co\/?p=1148"},"modified":"2022-08-04T10:09:14","modified_gmt":"2022-08-04T10:09:14","slug":"timber-has-always-been-great-investment","status":"publish","type":"post","link":"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/","title":{"rendered":"Timber has always been a great investment"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1148\" class=\"elementor elementor-1148\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-adcd44f elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"adcd44f\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-937b4dc\" data-id=\"937b4dc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-270e7869 elementor-widget elementor-widget-spacer\" data-id=\"270e7869\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2915fdf7 elementor-widget elementor-widget-heading\" data-id=\"2915fdf7\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Timber has always been a great investment<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-412400 elementor-widget elementor-widget-text-editor\" data-id=\"412400\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>In increasingly changeable market conditions, the research shows that timber delivers as it always has. Carbon negative and a superb hedge against inflation, the commodity keeps punching above its weight in return on investment.&nbsp;<\/b><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3f33f399 elementor-widget elementor-widget-spacer\" data-id=\"3f33f399\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-261c06f0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"261c06f0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-5b9bbee2\" data-id=\"5b9bbee2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-27a1a2f elementor-widget elementor-widget-heading\" data-id=\"27a1a2f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><a href=\"https:\/\/am.pictet\/en\/switzerland\/articles\/2021\/about-pictet-timber\">Based on an article by Pictet Asset Management, Switzerland<\/a><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d02498f elementor-widget elementor-widget-heading\" data-id=\"d02498f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The rise of timber as an asset class has captured media and investor attention the world over. <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-218220cd elementor-widget elementor-widget-text-editor\" data-id=\"218220cd\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Timber&#8217;s versatility and resilience go hand in hand. For years, skeptics pointed to the rise of digital and decline of paper as a reason to be bearish,\u00a0 but if recent trends continue,\u00a0<span style=\"letter-spacing: -0.24px; color: var( --e-global-color-text );\">investors in forestry have<\/span><span style=\"font-size: inherit; text-align: inherit; color: var( --e-global-color-text ); letter-spacing: -0.015em;\">\u00a0nothing but positives to look forward to.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-718efa6a elementor-widget elementor-widget-text-editor\" data-id=\"718efa6a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Senior Portfolio Manager of Timber Strategy at <a href=\"https:\/\/am.pictet\/en\/switzerland\/articles\/2021\/about-pictet-timber\">Pictet Asset Management<\/a>, Christoph Butz, highlighted that there are three trends diving the rise in fibre&#8217;s prospects, namely:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dc4b133 elementor-widget elementor-widget-text-editor\" data-id=\"dc4b133\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Shifting demographics<\/li><li>A consumption revolution driven by trends like e-commerce\u00a0<\/li><li>Sustainability<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-83f230e elementor-widget elementor-widget-heading\" data-id=\"83f230e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Investments in carbon negative funds could benefit from rising inflation and a rotation into cyclical value stocks<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-170d9a0 elementor-widget elementor-widget-text-editor\" data-id=\"170d9a0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Demand for wood products been tied to population growth and a rise in GDP per capita since the commodity has been traded. Wood\u00a0<span style=\"letter-spacing: -0.24px;\">for construction, paper-based packaging and other products has in\u00a0<\/span><span style=\"font-size: inherit; text-align: inherit; letter-spacing: -0.015em;\">developing economies, such as China, are seeing steep rise among the middle class, which has boosted demand for wood-based products, and is likely to do so for decades to come.<\/span><\/p><p>This change in consumption habits is playing in favor of the timber industry, with the shift towards online shopping and ecommerce generally accelerating the shift. The drive to move away from polymers towards sustainable and renewable alternatives is compounding the growth.\u00a0<\/p><p>As the only scalable renewable raw material on earth,\u00a0<span style=\"letter-spacing: -0.24px;\">is has somewhat plastic qualities itself.\u00a0<\/span><span style=\"font-size: inherit; text-align: inherit; letter-spacing: -0.015em;\">Timber is dynamic, providing pulp, energy, building materials and host of downstream products and applications. According to the Swiss investment firm and many other analysts, the companies that <a href=\"http:\/\/www.evergreenholdings.co\">own forests and who can control the flow of wood<\/a> will be the winners of tomorrow.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0e8f78d elementor-widget elementor-widget-image\" data-id=\"0e8f78d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.evergreenholdings.co\/wp-content\/uploads\/2021\/04\/SustainableUnmanagedForest.jpeg\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\"><\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d7d102c elementor-widget elementor-widget-heading\" data-id=\"6d7d102c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Stemming the worst impacts of climate change<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4725e252 elementor-widget elementor-widget-text-editor\" data-id=\"4725e252\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Timber alleviates climate change&#8217;s effects in two ways:&nbsp;<\/p>\n<p>The first is via carbon capture, storage and substitution. Forests absorb CO2 from the atmosphere and sequester it as biomass. Secondly, timber offsets the impact of fossil-based materials through wood-based alternatives, which keeps hydrocarbons beneath the earth&#8217;s surface, avoiding unnecessary emissions.&nbsp;<\/p>\n<p><span style=\"font-size: inherit; text-align: inherit; color: var( --e-global-color-text ); letter-spacing: -0.015em;\">The effects on consumption are significant. In the EU, 20% of total annual fossil emissions&nbsp;<\/span><span style=\"letter-spacing: -0.24px; color: var( --e-global-color-text );\">are compensated by the European forest industry<\/span><span style=\"color: var( --e-global-color-text ); font-size: inherit; letter-spacing: -0.015em; text-align: inherit;\">.&nbsp;<\/span><\/p><p>The substitution is not limited to steel, concrete and bricks in construction, or paper over plastic in packaging. The forest industry has innovating new technologies and applications for wood and wood derivatives for virtually anything that can be made from fossil sources.&nbsp;<\/p><p><span style=\"letter-spacing: -0.24px;\">This positive climate mitigation increases over many cycles of planting and harvest, whereas in an unmanaged forests, the carbon absorption reaches a plateau.&nbsp;<\/span><br><\/p><p>A company in Germany, for instance, is already producing wood-based biodiesel, which does not compete with the human food chain, and it is also currently building an industrial scale biorefinery to produce wood-based chemical compounds that can be used to replace oil-based materials . This new bio-based economy represents&nbsp; enormous future growth potential.&nbsp;<br><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5e8a3c57 elementor-widget elementor-widget-heading\" data-id=\"5e8a3c57\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What products are timber innovation companies producing?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1d0b791d elementor-widget elementor-widget-text-editor\" data-id=\"1d0b791d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>From timber, one can make an extremely wide range of products, from carbon neutral building materials such as the traditional lumber and wood panels, but also cross-laminated timber, which allows for constructing wooden buildings up to 20 stories high.<\/p><p><span style=\"font-size: inherit; text-align: inherit; color: var( --e-global-color-text ); letter-spacing: -0.015em;\">Sustainable paper-based packaging alternatives are seeing a major revolution in range and capacity, and wood-based textile fibers are now on the market, which consume 90% less water to produce than cotton, and do not shed microplastic in the washing machine, as polyester and acrylics do. Bio-based chemicals and wood-based biofuels for the future circular bioeconomy are likewise seeing meteoric growth and development.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-6097c3d4\" data-id=\"6097c3d4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f4fd2fa elementor-widget elementor-widget-heading\" data-id=\"f4fd2fa\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How will this theme continue to evolve?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-36bd9ac elementor-widget elementor-widget-text-editor\" data-id=\"36bd9ac\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Timber has been with us for centuries and will only become more important. The theme will evolve from within, as established timber companies continue to transform and evolve from traditional uses of woods into new materials &amp; products. The trend towards reducing CO2 emissions globally will result in increased growth rates both in traditional and new usages of wood as a sustainable and renewable raw material that can reduce the usage of fossil-based raw materials. Furthermore, once this growth translates into increased and more stable earnings, there is a high likelihood that this will also lead to higher valuations of sustainably managed timberlands, as the ownership and control of this unique resource will become more valuable. And finally, the companies that develop and market these new products should also see a substantial re-rating of their multiples, as a result of improved profitability and higher growth.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f5d41c1 elementor-widget elementor-widget-heading\" data-id=\"f5d41c1\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How does timber hedge against inflation?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-393babb elementor-widget elementor-widget-text-editor\" data-id=\"393babb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Having enough real asset exposure in the form of forest land is an important pillar of a diversified investment strategy. What is a forest land asset? It is a piece of land where you grow the trees and you harvest the trees to plant new ones. The trees that you have harvested are turned into cash flow. Therefore, the similarity to a bond is that the trees that you harvest is the coupon of a bond. In the case of timber, the cash flow is in the near term, which when discounted for a higher discount rate (because of higher inflation), will suffer much less than those of companies that receive cash flows at a later stage. As for underlying land; it is per se a good inflation hedge.<\/p><p>Lastly, we have observed that companies operating in this space have historically, in periods of high inflation, been able to raise their end product prices faster than their costs (labour, transport etc). So all in all, we are convinced that our strategy can offer a reasonable protection against inflation.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d90cf77 elementor-widget elementor-widget-heading\" data-id=\"d90cf77\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Is regulation impacting timber demand?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a6989af elementor-widget elementor-widget-text-editor\" data-id=\"a6989af\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-size: inherit; text-align: inherit; color: var( --e-global-color-text ); letter-spacing: -0.015em;\">Plastic bans or any taxes on non-renewable and fossil materials will be beneficial to the timber industry. The main reason why lots of packaging is still made of plastic is cost; a PET bottle for water, for example, is still considerably cheaper than a paper-based alternative. A plastic ban policy such as the one that China will implement from 2025 onwards will act as a further tailwind for the timber industry. The current market share of wood-based packaging is 33% against a 36% of plastic based packaging (Source: Company Presentations of Mondi, Metsa Board, Stora Enso, WestRock and Sig Combibloc), hence there\u2019s still a lot of market share to take, once the true environmental cost of the \u2018cheap\u2019 plastic packaging is recognized.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-70112fe elementor-widget elementor-widget-heading\" data-id=\"70112fe\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How has COVID-19 impacted timber?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a79ed74 elementor-widget elementor-widget-text-editor\" data-id=\"a79ed74\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Heightened awareness for health and sanitation has initially increased the demand for cellulose-based hygiene products such as tissue, wet wipes or even masks. But even more important is probably the ongoing influence of Covid on the U.S. housing market as people tend to move away from inner cities and want to live further out in single family homes, which in the U.S. are still predominantly built from wood. People locked at home or working from home invest more in repair and remodeling, adding an additional room or a wooden deck to their home. All this adds to lumber and wood product demand. But probably the longest lasting effect is on the packaging side. Covid has only accelerated the ongoing transition to e-commerce, and all these goods people buy online come in corrugated boxes and cardboard packaging which is made by our companies. This has led to very favorable conditions and higher pricing on packaging paper markets.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4c350c7 elementor-widget elementor-widget-image\" data-id=\"4c350c7\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.evergreenholdings.co\/wp-content\/uploads\/2021\/04\/Timber-SPX-Growth-SPX-Value.png\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\"><\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a9e13f9 elementor-widget elementor-widget-heading\" data-id=\"a9e13f9\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How does this translate into perfomance?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e1698b5 elementor-widget elementor-widget-text-editor\" data-id=\"e1698b5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>We have seen a very strong performance since the market meltdown a year ago, and in our view the conditions for a continued strong performance remain favorable . Over the last decade, we have more or less performed in line with the broader market, but then, it is fair to say, that the unprecedented dominance of growth over value has made it almost impossible for us to beat the broad market over this period. Investors also need to know that our fund exhibits quite a bit of volatility. Years of significant outperformance can be followed by years of significant underperformance. This volatility is due to the fact that our Timber strategy is closely tied to the real (manufacturing) economy, and many timber commodities tend to fluctuate with the economic cycle. Of course, this also opens interesting timing opportunities for investors, and has allowed us to create value for our investors across several underlying cycles over time.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bd23fa0 elementor-widget elementor-widget-heading\" data-id=\"bd23fa0\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why consider investing in timber?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-13d3012 elementor-widget elementor-widget-text-editor\" data-id=\"13d3012\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The long-term drivers for our strategy, particularly the sustainability angle, are stronger than ever before. From a more short to medium term perspective, all the underlying markets are strong and prices for our timber commodities are currently rising fast (lumber &amp; wood product prices, pulp and packaging paper). And then, from a factor perspective, the strategy has an inherent bias towards value and smaller capitalized cyclical stocks. So, the strategy is interesting for investors who think that the rotation into cyclicals could continue and that the unprecedent outperformance of growth over value, which we have witnessed over the last decade, might mean-revert at some point.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b826fd8 elementor-widget elementor-widget-heading\" data-id=\"b826fd8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><a href=\"https:\/\/am.pictet\/en\/switzerland\/articles\/2021\/about-pictet-timber\">Based on an article by Pictet Asset Management, Switzerland<\/a><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3532fb36 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3532fb36\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-37f9649e\" data-id=\"37f9649e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3bc4bd5b elementor-widget elementor-widget-heading\" data-id=\"3bc4bd5b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">GET IN TOUCH<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0e6986e fluentform-widget-submit-button-custom elementor-widget elementor-widget-fluent-form-widget\" data-id=\"0e6986e\" data-element_type=\"widget\" data-widget_type=\"fluent-form-widget.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\n            <div class=\"fluentform-widget-wrapper fluentform-widget-align-default\">\n\n            \n                        <\/div>\n\n            \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-19f2ad5b\" data-id=\"19f2ad5b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1454b729 elementor-widget elementor-widget-google_maps\" data-id=\"1454b729\" data-element_type=\"widget\" data-widget_type=\"google_maps.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-custom-embed\">\n\t\t\t<iframe loading=\"lazy\"\n\t\t\t\t\tsrc=\"https:\/\/maps.google.com\/maps?q=1%20George%20MacFarlane%20Ln&#038;t=m&#038;z=15&#038;output=embed&#038;iwloc=near\"\n\t\t\t\t\ttitle=\"1 George MacFarlane Ln\"\n\t\t\t\t\taria-label=\"1 George MacFarlane Ln\"\n\t\t\t><\/iframe>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Timber&#8217;s versatility is unrivalled. In a world of plastics and polymers, wood has proven resilient to the massive transformations that took place last century and continues to serve us as well as it did our ancestors. As a material, its robustness, longevity, beauty, strength, and\u00a0low environmental\u00a0impact mean it will be as important tomorrow as it is to people today.\u00a0<\/p>\n","protected":false},"author":5,"featured_media":15350,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[73,75],"tags":[12,74,76,77,69],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Timber has always been a great investment - Dendotron<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Timber has always been a great investment - Dendotron\" \/>\n<meta property=\"og:description\" content=\"Timber&#039;s versatility is unrivalled. In a world of plastics and polymers, wood has proven resilient to the massive transformations that took place last century and continues to serve us as well as it did our ancestors. As a material, its robustness, longevity, beauty, strength, and\u00a0low environmental\u00a0impact mean it will be as important tomorrow as it is to people today.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/\" \/>\n<meta property=\"og:site_name\" content=\"Dendotron\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-21T14:43:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-04T10:09:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/dendotron.co.za\/wp-content\/uploads\/2021\/04\/00_forest.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"750\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Evergreen Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Evergreen Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/\"},\"author\":{\"name\":\"Evergreen Admin\",\"@id\":\"https:\/\/dendotron.co.za\/#\/schema\/person\/7bd65e6d2b35ae7228567e80e83354f7\"},\"headline\":\"Timber has always been a great investment\",\"datePublished\":\"2021-04-21T14:43:32+00:00\",\"dateModified\":\"2022-08-04T10:09:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/\"},\"wordCount\":1595,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/dendotron.co.za\/#organization\"},\"image\":{\"@id\":\"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/dendotron.co.za\/wp-content\/uploads\/2021\/04\/00_forest.jpg\",\"keywords\":[\"covid-19\",\"diversification\",\"Resilience\",\"South Africa\",\"timber\"],\"articleSection\":[\"Corporate\",\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/\",\"url\":\"https:\/\/dendotron.co.za\/index.php\/2021\/04\/21\/timber-has-always-been-great-investment\/\",\"name\":\"Timber has always been a great investment - 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