ABP invests in timber
NETHERLANDS - ABP has allocated US$60m to the Global Solidarity Forest Fund (GSFF). In May this year, Global Pensions exclusively revealed the pension giant was set to invest in timberland.
The $100m GSFF portfolio is focused on sub-Saharan Africa and currently has five established investments in Mozambique and Angola, carrying out reforestation on degraded lands and responsibly managing natural forests.
ABP said: “Investing in timberland is attractive for pension funds as it provides stable and potentially high returns. The return on these forest investments in Mozambique are attained in a sustainable manner. All projects will be FSC-certified and GSFF has committed itself to the ten universal principles of the Global Compact.”
It added that GSFF’s investments would reforest and restore about 1.1m acres of forests.
Thijs Steger, a spokesman for ABP, said the organisation planned more invest in timberland in the future.
Steger said: “Our ambition is to expand these kinds of investments and it will depend on the opportunities.”
ABP’s investment comes after PGGM awarded its first mandate investing in sustainable managed forestry plantations to US manager GMO, earlier this month.
Timber has seen rapid growth in Europe with several funds including Sweden’s Kapan Pensioner, the London Pension Fund Authority (LPFA) and Denmark’s BankPension making allocations.
Latest stories
PTL bolsters Midlands presence with client director hire
PTL has appointed Karein Davie as a client director in its Birmingham office.
LDI activity rebounds in Q2 after subdued Q1; LIBOR to SONIA switching driving activity
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
Inflation sees first rise since November to 2.5%
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
Proportion of DB schemes targeting buyout trebles in past five years
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.
Most read
