Nest announces the appointment of a manager for its inaugural Timberland investment
Nest Partners with Campbell Global for Timberland Investments
Nest, the UK's largest defined contribution (DC) master trust and the country's largest pension scheme by members, has announced a significant partnership with Campbell Global, a timberland investment advisory firm under J.P. Morgan Asset Management. This move marks Nest's entry into timberland investments, a strategic decision aimed at diversifying its portfolio beyond equities.
Campbell Global has demonstrated a strong commitment to being good stewards of the environment, forests, and surrounding communities. They will manage a global timberland portfolio for Nest, with investments in key markets such as the US, Australia, New Zealand, and Chile.
Nest's decision to invest in timberland is driven by the belief that the preservation of natural capital will become increasingly important in the coming years, especially in relation to climate change mitigation and adaptation. Timberland investments offer environmental benefits such as carbon capture, water filtration, and habitat preservation. Additionally, they provide economic advantages like stable returns, inflation hedging, and portfolio diversification.
Stephen O'Neill, head of Private Markets at Nest, expressed confidence in Campbell Global's ability to grow alongside Nest and meet its high standards for responsible investing. He said, "We believe Campbell Global can help us achieve our goals in sustainable forestry practices, promoting biodiversity, and maintaining ecosystems."
Nest's assets have grown to more than £40bn, and the company has been among the first DC providers in the UK to confirm significant allocations to private markets. In 2022, Nest has announced investments in private equity, private credit, and renewable energy infrastructure. The appointment of Campbell Global is a part of this strategy.
The partnership between Nest and Campbell Global follows a rigorous procurement process involving 12 fund managers applying for the mandate, as announced at the beginning of the year. The company selected by Nest to manage its first timberland portfolio is BTG Pactual Timberland Investment Group (BTG Pactual TIG) with a $750 million mandate.
Nest's commitment to responsible investing and environmental stewardship is evident in its partnership with Campbell Global. As the DC master trust continues to scale up its timberland investments, it is clear that they are dedicated to making a positive impact on the environment while delivering sustainable returns for their members.
