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. Introduction To Investment Diversification
    Investing Basics

    Introduction To Investment Diversification

  2. How To Analyze Real Estate Investment ...
    Home & Auto

    How To Analyze Real Estate Investment ...

  3. The REIT Way
    Options & Futures

    The REIT Way

  4. How To Assess A Real Estate Investment ...
    Home & Auto

    How To Assess A Real Estate Investment ...

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center