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.
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