Agarwood is a resinous wood that occurs in trees belonging to the Aquilaria genus, Thymelaeceae family. Now listed as an endangered species as defined by CITES, Aquilaria is a fast growing, archaic tropical forest tree. It is found generally in South and Southeast Asia, from the foothills of the Himalayas to the forests of Papua New Guinea.
The tree grows in natural forests up to an altitude of about 1000 metres, with an ideal altitude of 500 metres. It can grow in a wide range of soils including poor sandy soil.
Agarwood is a tree that produces an essential oil, namely Oud being a product that is commonly referred to as 'more expensive than gold'.
Oud Oil is commonly used throughout the Muslim world as a perfume. In addition, it is used by the fragrance houses of Europe as a base for their retail perfume brands.
The value of first grade Agarwood is extremely high. A wide range of qualities and products are generally available with geographical location and cultural disposition being the main determinants of quality. Prices range for lower grade Agarwood from a low of US$ 1000 per kilo to in excess of US$ 30,000 per kilo for the higher grades of Agar Oil (Oud) and resinous wood, thus giving it the name of "liquid gold".
High values for its oil and resinous wood has seen Aquilaria decimated in natural stands to become an endangered species in the wild. Managed forestry is needed to assume control over the commercial production of Agarwood; this is where Treedom Investments Ltd., Investment Adviser to the Fund, comes to the fore with proprietary technology and controls being applied to its Agarwood projects.