UK pension scheme Nest announced the appointment of J.P. Morgan Asset Management’s timberland investment advisory company Campbell Global to establish a new evergreen timberland fund. Under the new agreement, Campbel Global will seek out opportunities for Nest in key global markets including the U.S., Australia, New Zealand and Chile, providing the pension scheme with a global portfolio of direct investments, focused on core traditional timberland. Alongside the appointment announcement, Nest highlighted a series of sustainability-related and financial benefits from timberland investment, including the promotion of sustainable forestry practices enabling ecosystem services such as carbon capture, water filtration, soil preservation, and habitat for wildlife, in addition to stable returns with a cash yield, a natural inflation hedge and portfolio diversification. Stephen O’Neill, 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.
To achieve zero emissions by 2050 the natural capital must be protected. According to Nest, the establishment followed a competitive procurement process, with 12 fund managers bidding to join the pension scheme’s existing timber estates. O’Neill said in choosing Campbell Global, “Nest was impressed with the complexity of operations, the responsible manufacturing philosophy and the ability to operate at scale to reduce operating costs and increase in the management of property.” J.P. Morgan Asset Management acquired Campbell Global in 2021 in a move aimed at directly engaging the forestry sector and aligning with the UN’s Sustainable Development Goals (SDGs) and enabling the company to direct access to migration. carbon economy, and the company hopes to become a strong company with the development of carbon markets.