Nest has confirmed the appointment of a manager for its inaugural timberland investment venture.
In a significant move towards diversifying its portfolio and investing in sustainable resources, the UK's largest DC master trust, Nest, has partnered with Campbell Global, a timberland investment advisory firm under J.P. Morgan Asset Management.
With over 12 million members, Nest is the largest UK pension scheme, and this partnership marks a significant step in its efforts to expand its horizons. Campbell Global will manage a global timberland portfolio for Nest, with investment opportunities in key markets such as the US, Australia, New Zealand, and Chile.
Nest has been actively seeking a timberland investment manager capable of scaling up investments. Stephen O'Neill, head of Private Markets at Nest, expressed that the importance of preserving natural capital will increase in the coming years, particularly in relation to climate change mitigation and adaptation. O'Neill believes that Campbell Global, the chosen timberland investment manager, can grow alongside Nest and meet its high standards for responsible investing.
The appointment of Campbell Global follows a competitive procurement process involving 12 fund managers. This move comes after Nest announced investments in private equity and private credit in 2022, and as DC providers in the UK face growing calls to diversify their portfolios.
Timberland investments offer environmental benefits such as carbon capture, water filtration, and habitat preservation. They also provide economic advantages like stable returns, inflation hedging, and portfolio diversification. This partnership aims to focus on sustainable forestry practices, promoting biodiversity and maintaining ecosystems.
Nest's portfolio diversification includes investments in timberland, private equity, private credit, and renewable energy infrastructure. The pension scheme has also integrated renewable energy infrastructure into its portfolio through a collaboration with infrastructure manager GLIL.
Since the introduction of automatic enrolment, Nest's assets have grown to more than £40bn. The partnership with Campbell Global is a testament to Nest's commitment to being a responsible investor, focusing on long-term returns while considering the impact on the environment and communities.
Campbell Global has demonstrated a commitment to being good stewards of the environment, forests, and surrounding communities. The firm's approach aligns with Nest's mission to create a better future for its members. This partnership is a step towards a more sustainable future for Nest and its members.
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