Illiquid assets
Unwrapping alternative returns Global Investor, 01/2015 Credit Suisse
Unwrapping alternative returns
Global Investor, 01/2015
Credit Suisse
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
GLOBAL INVESTOR 1.15 — 41<br />
NZ timber destinations<br />
Logs constitute New Zealand’s third-largest export<br />
industry. New Zealand is also now the world’s<br />
leading log exporter (as of 2012) and the biggest<br />
supplier of softwood logs to China (as of 2013).<br />
JAS: Standard units. Source: UN Comtrade, New Zealand MPI<br />
NCREIF Timberland TR Index<br />
Returns as measured by a diversified index of<br />
timberland investments. Timber serves as a good<br />
diversifier, remaining stable during the financial<br />
crisis of 2008 as shown in the index.<br />
Source: Bloomberg, Credit Suisse/IDC<br />
Volume (million JAS)<br />
16<br />
14<br />
12<br />
10<br />
Index<br />
3000<br />
2500<br />
2000<br />
The USA imports USD 2.9 bn worth of paper and paperboard from China<br />
8<br />
6<br />
4<br />
2<br />
0<br />
1500<br />
1000<br />
500<br />
0<br />
EU28 exports USD 2.6 bn<br />
worth of paper and paperboard to Russia<br />
03 04 05 06 07 08 09 10 11 12 13<br />
China India Japan<br />
Korea Taiwan Other<br />
03.87 03.95 03.03 03.11<br />
NCREIF Timberland TR Index<br />
RUSSIA<br />
The USA exports USD 3.3 bn worth of meat to Japan<br />
JAPAN<br />
CHINA<br />
Australia exports USD 1.6 bn worth of meat to Japan<br />
China imports USD 3.3 bn worth of dairy products from New Zealand<br />
AUSTRALIA<br />
Farmland<br />
Investing in farmland means<br />
investing in rural land along<br />
with specific crop and livestock<br />
<strong>assets</strong>. Crops may be row crops<br />
like soybeans or permanent<br />
fruit and nut crops.<br />
Soybeans<br />
Dairy products<br />
Meat<br />
Paper and paperboard<br />
Cotton<br />
Lumber<br />
Wood pulp<br />
Mature, intermediate<br />
and emerging timberland<br />
investment regions<br />
With most US forestry <strong>assets</strong><br />
already in institutional ownership,<br />
investor interest has turned<br />
to non-US markets, e.g. Asia. In<br />
Europe, forests are generally in<br />
private hands.<br />
Mature<br />
Intermediate<br />
Emerging<br />
Australia exports USD 1.7 bn worth of cotton to China<br />
Excellent climate for<br />
agriculture, total annual<br />
rainfall<br />
Agricultural productivity is<br />
greatest in the world’s temperate<br />
zones. Nonetheless, other<br />
regions, such as South America<br />
and Africa, where water is still<br />
plentiful, are drawing investor<br />
interest.<br />
475–4974 millimeters rain<br />
Selected international<br />
agri-trade flows in USD<br />
Find more<br />
information in<br />
the articles<br />
on pages<br />
39 and 42<br />
NEW<br />
ZEALAND
Change language