Folksam invests €50m in Nordic and Baltic forestry fund

Swedish pensions and insurance firm Folksam is investing €50m in Nordic and Baltic forests via a fund set up by SEB and CRK Forest Management.

Folksam will become one of the two anchor investors, alongside life insurer SEB Trygg Liv, in Silvestica Green Forest, which is intended to grow to €500m over time.

Michael Kjeller, head of asset management at Folksam Group, said: “This investment in forestry assets suits us well and will contribute both to a continued good return for our customers and sustainable development.

“The investment provides us with real assets with a secure and stable cashflow, at the same time as having low correlation with the equities market.”

Silvestica Green Forest will acquire forestland in Sweden, Finland and the three Baltic countries, and will manage the forest holdings responsibly and sustainably to raise values and generate stable yields, Folksam said. 

The aim is for Silvestica Green Forest to own €500m of forestland within three to five years, Folksam said.

The forestry fund made its first investment in July, buying around 7,000 hectares of woodland in Finland from Finnish forest industry company UPM.

Folksam said its investment in the fund would be distributed within the group, with life and pensions arm Folksam Liv taking on €22m, pension fund KPA Pension holding €22.5m, and non-life insurance division Folksam Sak holding €5.5m.


Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • DS-2382

    Closing date: 2017-12-14.

  • QN-2383

    Asset class: Residential Property.
    Asset region: Ireland.
    Size: EUR 10m.
    Closing date: 2017-12-18.

  • QN-2384

    Asset class: Equities Switzerland (Large Caps).
    Asset region: Switzerland.
    Size: CHF 550 – 600 mn.
    Closing date: 2017-12-15.

  • QN-2385

    Asset class: Liability Driven Investment.
    Asset region: Europe.
    Size: Size: EUR 1 Billion, Liability size: EUR 3 Billion.
    Closing date: 2018-01-08.

  • QN-2386

    Asset class: Fixed income.
    Asset region: Global developed markets.
    Size: CHF 500 -1000m.
    Closing date: 2018-01-15.

  • DS-2392

    Closing date: 2017-12-21.

  • QN-2393

    Asset class: All/Large Cap Equities.
    Asset region: Europe.
    Size: EUR 200m.
    Closing date: 2017-12-21.

  • QN-2394

    Asset class: Real Estate Industrial.
    Asset region: Europe.
    Size: EUR 10m.
    Closing date: 2018-01-04.

Begin Your Search Now