UK workplace pension scheme NEST has selected JP Morgan Asset Management’s timberland investment advisory company, as its global timberland investment manager.
NEST said it has set up a fund with Campbell Global, to provide the pension scheme with a global portfolio of direct investments, focused on core traditional timberland.
In September last year, the UK’s largest pension scheme by members said it had begun the formal process of appointing one or more fund managers to help its 12m members invest in timberland, as part of its plan to invest in natural capital.
NEST said it selected Campbell Global after a competitive process involving 12 fund managers offering access to sustainably managed timberland.
“There are many potential benefits to investing in timberland, including stable returns with a cash yield, a natural inflation hedge and portfolio diversification,” NEST said, adding that Campbel Global will seek out opportunities in key global markets – the US, Australia, New Zealand and Chile.
Stephen O’Neill, the head of private markets at NEST, said: “We believe the importance of preserving natural capital will only increase in the coming years.
“Many aspects of our ecosystem such as forestry, water and agriculture are closely linked to climate change mitigation and adaptation. Achieving net-zero emissions by 2050 will require natural capital preservation.”
John Gilleland, CEO and chairman of Campbell Global, said: “We are delighted to be partnering with NEST to implement their core timberland portfolio strategy, leveraging Campbell Global’s decades of expertise in forestland investment advisory and services for the benefit of NEST’s members.
“Timberland represents a unique investment that offers NEST’s members the opportunity to combine investment and sustainability goals, which include enhanced portfolio diversification, a hedge against inflation, carbon removal to help mitigate climate change, and the preservation of biodiversity.”
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