Nest sets up evergreen timberland fund with Campbell Global

Nest has confirmed the appointment of Campbell Global, J.P. Morgan Asset Management’s timberland investment advisory company, to provide the pension scheme with a global portfolio of direct investments, focused on core traditional timberland. 

When managed correctly, timberland investments promote sustainable forestry practices, ensuring the responsible management of forest resources, preserving biodiversity, and maintaining ecosystems. 

Well-managed forests can provide critical ecosystem services such as carbon capture, water filtration, soil preservation, and habitat for wildlife, enhancing the overall environmental value of the investment. Timberland investments also provide a renewable resource for a growing economy, from supplying construction materials to biodegradable packaging. 

There are many potential benefits to investing in timberland, including stable returns with a cash yield, a natural inflation hedge and portfolio diversification. Campbel Global will seek out opportunities for Nest in key global markets - the US, Australia, New Zealand and Chile.

Commenting on the announcement Stephen O’Neill, Head of Private Markets at Nest, said:

“Campbell Global is one of the largest and longest established timberland investment advisory organisations, so we expected them to put in a strong bid. We were particularly impressed by the sophistication of their operations, responsible investment philosophies, and ability to work at scale to minimise operating costs while maximising integrated asset management.

“We believe in Campbell Global we have found a partner that can grow alongside Nest, meeting our high bar for responsible investing – they’ve demonstrated they want to be good stewards of the environment and the forests, and the communities around the forests.

“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. Achieving net zero emissions by 2050 will require natural capital preservation.”

John Gilleland, Chief Executive Officer and Chairman of Campbell Global, said: 

“We are delighted to be partnering with Nest to implement their core timberland portfolio strategy, leveraging Campbell Global’s decades of expertise in forestland investment advisory and services for the benefit of Nest’s members. Timberland represents a unique investment that offers Nest’s members the opportunity to combine investment and sustainability goals, which include enhanced portfolio diversification, a hedge against inflation, carbon removal to help mitigate climate change, and the preservation of biodiversity.”

The appointment of Campbell Global follows a competitive procurement process in which 12 fund managers applied to offer Nest access to sustainably managed timberland.