Main Conference Day Two: Friday, June 25, 2010

8:30 - 9:30 Pension & Endowment Fund Think Tank

By Invitation Only

The Pension & Endowment Think Tank is an hour long discussion mini-track limited to 15 participants from pension and endowment funds. There are two levels of participation: You can be among a select group of leaders that will bring to the forefront one topic of interest or challenge you are facing right now. Or you can be an attendee and take advantage of an exclusive networking opportunity that is focused on your specific needs. Attendance is strictly limited to pension and endowment funds, and all discussions are off-line and off the record. Key discussion areas will include:

• Portfolio optimization strategies
• Market timing and access strategies
• Comparisons with other alternative asset classes
• Risk management for timberland investments

Pension funds confirmed (as of 02/19/10) include: Mass- PRIM, Dallas Police & Fire Retirement System, APG, TIAACREF & CPP Investment Board

9:40 Chairperson’s Opening Remarks

9:50 KEYNOTE ADDRESS: The Changing Investment Landscape: Does The TIMO Or The REIT Own The Future?

You asked us to bring back Joel Shapiro. We listened – and awarded him his own keynote address on the future of the timberland investments space! This unmissable session will delve deep into the factors currently affecting change in the timberland landscape, including considerations on the structures that will dominate the future and the ongoing dynamic between TIMOs and REITs. Specific focus areas will include:

• Evaluating the pros and cons of TIMOs and REITs
• Liquidity considerations
• Taxation considerations
• Appropriateness of each structure for differing investment horizons
• Examining the factors that will determine whether the TIMO or REIT structure stands to benefit in the future

10:35 International Trends In Timberland Investments

The 7th Timberland Investment Summit is focused on North American investment opportunities. Nevertheless, the audience is international in outlook, and there is strong interest in the global picture for timberland investments. Dennis Neilson of DANA – who has made a name for himself in recent years by publishing the industry’s pre-eminent report on timberland markets globally – will present the findings of his latest study, with a particular focus on:

• The size of institutional investment – North America versus international
• Historical trends of international investment – scale and players
• New international investment trends – the sizzle countries and outlook
• Changing investment return targets
• International country risk analysis

12:05 Reassessing The Role Of Timberland Within Institutional Portfolios: A Comparison With Alternative Asset Classes

• IQPC is honored to unveil its largest and most significant investor roundtable ever – with senior decision-makers confirmed from
• Mass-PRIM, APG, TIAA-CREF, CPP Investment Board, and Dallas
• Police & Fire Retirement System. This extended panel discussion will cover all aspects of the asset class from the viewpoint of institutional investors, including its suitability as an inflation hedge, its role within an alternatives portfolio, and the most effective diversification strategies within the asset class itself:

• A closer look at the attractiveness of timberland from an institutional perspective:
• Biological growth
• Inflation hedging
• Low volatility
• Reduced stock market correlation
• Considerations on the size of timberland allocation within an institutional portfolio
• Diversification strategies within the timberland allocation: determining the optimal mix of geographies, species-types, and management styles
• Institutional risk management strategies for timberland investments

2:15 Maximizing Returns From “Higher Better Use” Land

Despite (at the time of writing) soaring lumber futures, the longterm prospects for timber prices remain uncertain – and many investors continue to look seriously at alternative strategies for extracting value from their timberland assets. HBU – Highest Best Use – a broad term which encompasses numerous alternative revenue streams, is well understood – but what’s less well understood is precisely how landowners should go about setting up alternative revenue streams, which streams they should prioritize, and how they should be maximized. Steven Diebenow is one of the world’s top experts in this niche field, and in this session he will deliver strategies for:

• Examining the benefits of designating and identifying HBU land
• Understanding the most effective valuation techniques for HBU land
• Prioritizing HBU land: A rural real estate analysis to determine which variety of HBU will be most valuable
• Incorporating HBU land into your portfolio strategy

Laurie Fitzmaurice
Vice President
CE2 Capital Partners

3.20 Exploring The Economics Of Harvest Timing: Is Conventional Wisdom Accurate In The Current Environment?

The conventional wisdom of industrial timberland management is that when timber prices are weak, managers maximize value by harvesting the minimum amount of trees possible, deferring further harvest until timber prices recover. The presumption is that future value – driven by continued biological growth plus higher future timber prices – will more than make up for the weak current cash yields resulting from minimal harvest operations today. This strategy appears to be widely followed by timberland managers during the current period of weak timber prices.

In this continuing extraordinary timber price environment, however, it is appropriate to ask: under what set of circumstances might the conventional wisdom to defer harvests fail to maximize value? Might the unusual distress of the recession and its profound impact on timber prices suggest a different approach to harvest timing? Is there a contrarian opportunity to accelerate harvesting, maximizing current cash flow in exchange for reduced future potential value? Does the duration of low timber prices suggest that cutting now might be better than waiting it out?

4:05 End Of Conference