In an effort to determine an ideal portfolio mix, RMK Timberland Group’s market analysis and forest management models help translate your return objectives, liquidity requirements, investment time horizons, risk tolerance and other parameters into the right blend of emerging, established and mature growth timber investments. Capitalizing on the life cycle stages of a forest, RMK Timberland constructs four distinct investment strategies:

Emerging Growth Strategy
For investors with a time horizon of 12 to 15 years, this strategy capitalizes on the very rapid growth of young trees and their relative price stability. The largest markets for these trees are in the southern United States, where industry concentration has developed around privately owned forests.

Established Growth Strategy
This investment strategy acquires trees that are 15 to 25 years old and holds them for a period of 10 to 15 years. Emphasis is on gaining liquidity and enhancing returns at a moderate level of risk. Liquidity is enhanced by broader marketability of products, typically 60 percent for pulpwood and 40 percent for small dimension lumber.

Mature Growth Strategy
This strategy focuses on trees that are more than 25 years old, holding them for 5 to 10 years until they reach optimum marketability. Trees in this sector typically have slower biological growth, however, with these investments, liquidity is very high because of the high-end use for the timber – primarily for large-dimension lumber and plywood.

Balanced Growth Strategy
This strategy is designed to invest in a timberland portfolio that balances the investment goals of competitive returns, liquidity and reduced risks. The typical investment period for this strategy is 10 to 15 years. The level of investment in each life cycle stage can be varied based on investor objectives. A typical distribution may include 30 to 40 percent in the emerging growth stage, 40 to 60 percent in the established growth stage, and 10 to 20 percent in the mature growth stage.