TIG’s Investment Principles

1. Timberland investments will be made in accordance with our global investment strategy
2. Our goal is to generate alpha for our timberland investment portfolios
3. We will focus our investments on commercial plantations and non-tropical natural forest ecosystems
4. We will primarily invest in core geographies supporting known silviculture, developed and diversified forest product markets, established environmental systems and certification schemes, and developed property management, operational and harvesting infrastructure
5. We will fully consider the environmental and social nature of the timberland investment; employing best forest management practices, and the most appropriate forest certification programs for each investment region
6. We have a strong preference toward investments in fee ownership of land, sole ownership and control of timberland assets, and/or operating companies owning timberland assets
7. We will not invest in a geography where we cannot achieve operational and economic scale within a three year period of time
8. We will not invest in a geography where there is a recognized physical risk to employees, consultants, or clients
9. While our investment focus is on commercial timberland, we will fully develop associated value-added assets that may be acquired as a result of timberland investments to maximize the value of the investment
10. We will consider vertical integration of investment and property management services, and investment in primary conversion activities where clear value can be created for investors, and conflicts of interest can be managed in a fully transparent manner
11. Investment will be structured to be as tax efficient as practical; and will comply with FCPA and all known international investment rules, regulations, and guidelines
12. We will consider long-term external leverage, with requisite investor approval, in situations where we believe the inherent optionality of timberland investing is not compromised, and all perceived risk is offset with the increase in pro-forma returns
13. All acquisitions will delineate a disposition strategy on acquisition
14. Our objective is to be the most profitable timberland investment manager, not necessarily the largest