Timber Fund Description

TARGET FUND SIZE

$150 Million

Focused Portfolio

Maximum number of holdings : 20

Positions that go over a 10% weighting are scaled back

BENCHMARK

S&P Global Timber & Forestry Index (SPGTTF)

HIGH WATERMARK

Perpetual

TURNOVER RANGE TARGET

25-30% -Ongoing evaluation

MACRO THEMES

• Current cycle is “supply-driven” as opposed to previous cycles that were largely “demand-driven”.
• Global supply and demand balance tilting to a greater deficit.
• Natural disasters: insect infestations, weather, and wildfire, coupled with ongoing deforestation are having a material effect on timber supply.
• Demographics in developed countries have held back normal demand, while demand from emerging markets continues to grow.
• New uses for timber –Mass Timber Construction, Cross-Laminated Timber (CLT), and Industrialized Wood-Based Offsite Construction.
• Trade wars and tariffs.