Portfolio construction also focuses on diversification by geographic location, timber markets, products and species.

RMK Timberland Group normally acquires assemblages of timberland that are geographically dispersed and comprised of several tracts. This is important for controlling risks associated with severe weather conditions and natural causes such as fire, insects and disease.

Proper allocation of timberland across timber market regions is critical to effectively diversify their unique risk and return characteristics. Timber product prices differ across geographic market areas, and timber prices across these markets tend to have a low correlation with one another.

We closely track product prices on an ongoing basis in each investment region and timber market identified in the map below. We receive price reports from independent, third party sources and use the data to develop regression equations to model price trends for each timber product within each market area.