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.

BREAKING DOWN '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.

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