Forestry tops UK returns in 2006
Returns increased by 20.6% last year, outperforming equities, gilts and commercial property for the first time.
Annual returns in Britain over 14 years are 3.4% for forestry, compared to 9.9% for stocks and shares, 7.8% for gilts, and 12.9% for commercial property. Over five years forestry’s 7.8% return beat the 5.1% from gilts, but lagged behind the 8.5% return from stocks and shares, and 15.1% per year for commercial property.
The figures from the IPD investment analysis company showed forestry returns varied widely depending on location, age and type. Commercial woodland aged over 30 years was the strongest sector, with 2006 returns of almost 27%. The IPD Forestry Index is calculated from a sample of private sector plantations of Sitka spruce in Britain.
