The forest funds enable a different model of forest ownership: we look after all aspects of forestry investment on behalf of our customers and provide clients with the possibility of a steady and stable cash flow.
Although there is no shortage of forest in Finland, investing in it is not that easy. It takes a lot of in-depth knowledge of the acquisition and management of forestry assets and of correctly timing the harvesting and sales processes. Taaleri looks after all these under the management of our forestry expert, Jyrki Ketola. The model for maximising the return from forestry investments is another unique feature of the Taaleri model: we optimise the return on invested capital, not the return per hectare, which is the traditional way.
Historically stable investment
Forestry investment offers the investor the expectation of a steady and stable cash flow. Forestry is also an excellent element for diversifying the investment portfolio as the return from forestry does not correlate with shares or government bonds. Furthermore, forests have historically maintained their value and offered protection against inflation, because the price of wood has followed the general inflation rate. Returns from forestry can also be optimised by correctly timed harvesting and sales. Taaleri Forest Fund III is an easily understandable, concrete and historically stable investment in Finland.
Demand for wood on the rise
The volume of forests in Finland has kept increasing since the 1950s, because the annual ‘reduction’, or harvesting and natural reduction, are equivalent to only 70 % of the total annual growth of the wood stock. The demand prospects for Finnish wood also remain positive despite a fall in demand for sawn timber on the export market as a result of a slowdown in the global economic growth rate. In Finland, we are building new pulp production capacity, but it will not significantly affect the market until 2022. In general, the use of wooden structures is increasing in construction and the consumption of high-quality carton board is also on the rise.
Taaleri Forest Fund III was established in 2014 and has accumulated approximately €18 million in investment commitments from some 100 investors. The forests managed by the fund comprise approximately 20 estates and cover a surface area of 7,650 hectares of which the amount of forest land is approximately 6,226 hectares. The fund’s forests are situated in North Karelia, North Savo, Kainuu and Pirkanmaa.
The fund is closed and is no longer accepting new investors.
No consideration of adverse impacts of investment decisions on sustainability factors
This financial product is labelled as an Article 6 product according to EU SFDR regulation (2019/2088). The investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities. This is because these products are closed funds that no longer actively do marketing market or raise funds, and no changes can be made to their investment strategies.
Portfolio Manager
Jyrki Ketola
Director, Forest Investments
Private Equity Funds
Helsinki
Helsinki
+358 400 606 522
jyrki.ketola@Taaleri.com