U.K. workplace pension plan Nest Pensions has hired Campbell Global, J.P. Morgan Asset Management’s timberland investment advisory firm, to provide a global portfolio of direct investments focusing on timberland. Financial terms were not disclosed.
“There are many potential benefits to investing in timberland, including stable returns with a cash yield, a natural inflation hedge and portfolio diversification,” Nest officials said in a statement, adding that Campbell Global will look for timberland investment opportunities in the U.S., Australia, New Zealand, and Chile.
The pension said it is seeking timberland investments that promote sustainable forestry practices, responsibly manage forest resources, preserve biodiversity, and maintain ecosystems. The pension said well-managed forests can provide services such as carbon capture, water filtration, soil preservation, and wildlife habitats. It also said timberland investments provide a renewable resource for construction materials to biodegradable packaging.
“We believe the importance of preserving natural capital will only increase in the coming years,” Stephen O’Neill, Nest’s head of private markets, said in a statement. “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.”
Campbell Global was among 12 fund management firms to compete to provide Nest with a timberland investment strategy.
“Campbell Global is one of the largest and longest established timberland investment advisory organizations,” O’Neill said in a statement. “We were particularly impressed by the sophistication of their operations, responsible investment philosophies, and ability to work at scale to minimize operating costs.”
Nest, which has 12 million members, launched the procurement process for a timberland manager in September 2023 as part of an effort to include natural capital investments in the portfolio.
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Tags: Campbell Global, forestry, J.P. Morgan Asset Management, Nest Pensions, Stephen O’Neill, sustainable, timberland