Timber Investment Management Organization - TIMO

AAA

DEFINITION of 'Timber Investment Management Organization - TIMO'

A management group that aids institutional investors in managing their timberland investments. A TIMO acts as a broker for institutional clients. The primary responsibility of TIMOs are to find, analyze and acquire investment properties that would best suit their clients. Once an investment property is chosen, the TIMO is given the responsibility of actively managing the timberland to achieve adequate returns for the investors.

INVESTOPEDIA EXPLAINS 'Timber Investment Management Organization - TIMO'

TIMOs developed in the 1970s after congress passed legislation that encouraged institutional investors to diversify their portfolios. Before the legislation, investment in timberland properties was mainly done by both large and small firms in the forestry industry. In 2002, a study done by Yale's Program on Private Forest Certification showed that approximately $14.4 billion in land was managed by TIMOs.

RELATED TERMS
  1. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  2. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
  3. Real Estate Investment Trust - ...

    A security that sells like a stock on the major exchanges and ...
  4. Broker

    1. An individual or firm that charges a fee or commission for ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments ...
  6. Timberland Investment

    An investment instrument used primarily by large institutional ...
Related Articles
  1. Investing Basics

    Introduction To Investment Diversification

  2. Home & Auto

    How To Analyze Real Estate Investment ...

  3. Options & Futures

    The REIT Way

  4. Home & Auto

    How To Assess A Real Estate Investment ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center