ACCESS Pool has selected two managers to execute its first venture into timberland through an initial £300m mandate.
The pool, holds £40bn in pooled assets on behalf of 11 partner funds has appointed Stafford Capital Partners (“Stafford”) and J.P. Morgan Asset Management (JPMAM) as its global timberland managers.
Currently, two of the ACCESS Authorities invest in timber, with the new investments originating from authorities previously lacking such allocations. The two strategies will focus on global core timberland and timberland investments with an impact angle.
Stafford will manage core timberland investments through its Stafford International Timberland (SIT) series of funds, now in its tenth iteration. This strategy focuses on operational, income-generating timberland estates, primarily accessed through off-market secondary transactions.
JPMAM, leveraging its timberland investor and forestry management company Campbell Global, will provide diversified exposure to core timberland assets worldwide. This strategy aims for a negative carbon footprint, aligning with SFDR Article 9 regulations.
ACCESS’s global timberland impact allocation will be managed by the Stafford Carbon Offset Opportunity Fund (Stafford Carbon Fund). This fund creates new commercial timberland estates, generating returns that include high-quality carbon offsets for clients.
Cllr Mark Kemp-Gee, chair of the ACCESS Joint Committee, commented, “We have been exploring ways to include natural capital investments in our portfolio as we continue to diversify our private markets allocation, while also moving closer to net zero targets. Timberland ticks all these boxes, and we are delighted to have chosen two market-leading investment partners in this field for the benefit of our partner funds and members.”
Angus Whiteley, CEO of Stafford Capital Partners, stated, “We are honoured to establish this landmark partnership with ACCESS in the timberland sector. Commercial timberland presents a unique investment opportunity which delivers uncorrelated, long-term, inflation-linked returns while making a significant contribution to the environment and natural landscape. With the award of these two mandates, we look forward to building on our successful partnership with ACCESS and its partner funds and delivering for their members.”
ACESS’ appointments come amid growing demand for natural capital strategies among LGPS investors. Earlier this year, the Scottish Borders Pension Fund had appointed Nuveen to execute its timberland strategy. Other examples include the Essex and Leicestershire Pensions funds who have committed to timberland investments.
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