Low Correlation with Most Other Asset Classes

TIMBERLAND CORRELATION VS OTHER ASSET CLASSES

Source: S&P Cap IQ, NCREIF, FRED Economic Data

Timberland returns are driven primarily by the biological growth of trees, which is a physical process. Consequently, timberland’s return generating process is largely independent of the factors that provide returns from equities and fixed income. As a result, the correlation of timberland returns with most traditional asset classes is not statistically different from zero.