PT - JOURNAL ARTICLE AU - Bert Scholtens TI - The Diversification Potential of Tropical Timber Plantation Investment Funds AID - 10.3905/jai.2000.318978 DP - 2000 Mar 31 TA - The Journal of Alternative Investments PG - 58--61 VI - 2 IP - 4 4099 - https://pm-research.com/content/2/4/58.short 4100 - https://pm-research.com/content/2/4/58.full AB - This article investigates whether a particular type of international investment is helpful in diversifying an investor's portfolio. We analyze tropical timber plantation investment funds that sell participants in forest plantations. Apart from an attractive expected return on investment, these funds suggest that investing in this investment vehicle might save tropical forests. The investment has almost no systemic risk and has an expected return that is far above the riskā€“free rate of interest. Nevertheless, because of credit risk, country risk, and limited liquidity, we find that there is no free lunch to be found in the rainforests.