- Australia is a politically stable and legally reliable investment location.
- The forest sites have been chosen after qualifying a number of aspects (climate suitability, soil quality, water licenses, legal, indigenous rights, logistics, natural risks – and price).
- The mitigation of natural risks starts with the site location (read more under: Forestry Management – Exemplary Risk Management),
- The risks of poaching and theft are minimal (never happened) due to extreme remoteness and high-tech protection.
HIGH BARRIERS TO MARKET ENTRY
Our partner Quintis has more than two decades of expertise and experience in sandalwood cultivation. As a hemi-parasite, Sandalwood is a highly demanding species; hence successfully cultivating it is an art that Quintis has mastered through hands-on trial and error and scientific precision over the last 20 years.
This gives them a tremendous head-start compared to any potential new competitor trying to enter the market, as they have
the most comprehensive scientific sandalwood database in the world,
a large team of specifically trained and experienced sandalwood experts,
refined know-how to develop and cultivate high-quality seeds and seedlings which leads to a current survival rate of sandalwood trees on our plantations of over 90%, which is significantly above target.
LOW CORRELATION – HIGH PORTFOLIO ENHANCEMENT
- Sandalwood is a USP-product in geographically and thematically widely diversified markets.
- Sandalwood is not traded on any commodity exchange.
- This tangible asset is unusually independent of currency fluctuations.
- Even in comparison with typical timber investments, JC Sandalwood shows little correlation – due to the totally different and more diversified product markets, and its independence from commodity exchanges.
- Thus, we value this investment to be an outstanding portfolio balancer and enhancer by virtue of diversifying portfolio risks (low correlations) and above-average financial returns.
- As a vanguard of the „new“ investment portfolio theory, the unique and massive sustainability impact of JC Sandalwood constitues an extra layer of portfolio enhancement.