Institutional investors are increasingly committing capital to timber, aiming to benefit from new investment markets overseas, Pensions & Investments (P&I) reported on 5 October. More than US$57 billion of institutional capital is currently invested in timber globally, compared with less than $1 billion in 1989, according to P&I, citing research firm RISI Inc.
The NZ$29.32-billion New Zealand Superannuation Fund in Auckland has invested in timber for the past decade and has 5% in the asset class. The Sacramento-based California Public Employees Retirement System (CalPERS) had $2.4 billion invested in timberland as of March 31, 2014, P&I noted. CalPERS has one account with US-based timberland investment management organization (TIMO) Campbell Global LLC that includes two portfolios in U.S. South, and another with Sylvanus LLC, which includes properties in Brazil, Guatemala and Australia.
Seattle-based Plum Creek Timber Co. in September announced a joint venture with investors, initially involving the Alaska Permanent Fund, Oregon Public Employees Retirement Fund, and Washington State Investment Board, to own and sustainably manage a portfolio of US timberlands.
In June, TIAA-CREF and its subsidiary Greenwood Resources LLC closed on a $667 million global timber company, Global Timber Resources LLC, which will invest in land throughout North America, Latin America, Europe and Asia.
New Mexico State Investment Council has committed $250 million to timberland, $50 million allocated to Forest Investment Associates and $100 million each to Brookfield Asset Management and Hancock Timber Resource Group (HTRG), P&I reported.
The Missouri Local Government Employees Retirement System in June hired Timberland Investment Resources to manage a US$146M timber portfolio. Dania Zinurova, manager research, diversifying strategies at Towers Watson & Co.’s Sydney office, told P&I institutional that investors globally are diversifying from traditional asset classes with timber investments for a stable return and little volatility.
According to the National Council of Real Estate Investment Fiduciaries' timberland indices, annual returns over the past three years have generally been 9%-10%. While the U.S., Canada, Australia and New Zealand currently account for 80%-90% of timberland investment, emerging and semi-mature forestland in Latin America, Asia, Africa and Europe is attracting interest, according to Sydney-based New Forests Pty. Ltd.’s 2015-2019 Timberland Investment Outlook.
Sao Paulo-based BTG Pactual Asset Management announced in May it had raised US$860M in a timberland fund to invest in Brazil and other countries in Latin America. And U.S.-based TIMOs, including Campbell Global and HTRG, these days offer global strategies in response to increased investor appetite for offshore timberland investments.
Michael Underhill, chief investment officer at Wisconsin-based real asset manager Capital Innovations LLC, said investors and managers are taking advantage of global demographic trends, such as China’s move to an industrial economy, which is helping drive demand for timber, notably logs, from North America.
Source: Industry Intelligence Inc
tis een kwestie van tijd ...want deze is goed,
" that investors globally are diversifying from traditional asset classes with timber investments for a stable return and little volatility."