Sustainable forestry investment firm "Greenwood Management" has revealed a surge of interest in Latin American forestry investment, and has stated that investing outside the troubled Eurozone is a wise move for more risk-averse investors who still want to see a healthy return.
Although the recent Greek bail-out plan offered a glimmer of hope to the Eurozone countries, banks and investors still lack confidence in Greece’s ability to repay debts. As a result, investors are still extremely cautious in the region.
Denmark-based "Greenwood Management" offers investors from Europe and elsewhere the chance to invest in an emerging economy – Brazil. It operates a system whereby investors commit as little as EUR 10,000 to buy a section of sustainable plantation land. Investors simply sit back and watch their investment literally grow, while in the knowledge that the project is also helping to reduce deforestation of native forests in Brazil.
Greenwood Management’s spokesperson stated, "The Euro is seriously struggling at the moment and global markets are all feeling the pressure as a result. Traditional investments are simply not as attractive as they were in more stable times and we are seeing far more fund managers opting for alternatives, such as forestry investment.
"Team this with reports that emerging economies, such as Brazil, could continue to see their economies grow, and investing in Brazilian forestry looks like a great option," he added.
The Brazilian government is very keen to attract foreign investment to help it to scale up its production of sustainably produced timber and charcoal, which are being used both domestically and abroad. Demand from within Brazil for charcoal from non-native timber is high as the construction industry prepares for both the 2014 FIFA World Cup and the 2016 Olympics. Meanwhile, demand for raw materials from China and India is soaring alongside their economic strength.
Currencies outside of the Eurozone could reap the benefits of the troubled Euro. The Brazilian Real, for example, has performed well so far this year. An interest rate rise this week has also attracted a whole swathe of new investors to the country, further driving up its value.
"A new wave of investors are putting their money in Brazilian interests," explained Greenwood Management. "We are hoping to continue this momentum and guide people towards forestry as an ethical and lucrative investment option."
Source: pr.com
