June 28, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

ACCESS Pool, a £40 billion (US$50.56 billion) UK pension fund vehicle overseeing the pooled assets of 11 administering authorities consisting of a collaboration of Central, Eastern, and Southern Shire Councils, has selected Stafford Capital Partners (Stafford) and J.P. Morgan Asset Management (JPMAM) to be its global timberland managers. 

Two of the ACCESS Authorities currently invest in timber, with new investments coming from Authorities previously not involved in the asset class. The total initial mandate size across both components will be approximately £300 million (US$379.2 million) with expectations for further growth in investments focused on global core timberland and timber investments that bring positive impact. 

These appointments echo the recent announcement earlier this year by the Scottish Borders Council Pension Fund that it was partnering with Nuveen to make its first natural capital investment by backing Nuveen’s flagship Global Timberland strategy, while noting the potential for future allocations across Nuveen’s Natural Capital platform in both forestry and farmland. 

There is a broadly embraced goal among global investors to see their portfolios shift to net zero by 2050, and natural climate solutions, such as timberland, are the lowest-cost scalable channel through which to achieve this, according to the World Resources Institute. 

“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,” said Cllr Mark Kemp-Gee, chairman of the ACCESS Joint Committee. 

“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.”

Under this structure, Stafford will invest in core timberland through its Stafford International Timberland (SIT) funds, now in its tenth generation, focusing on operations, yielding timberland properties, primarily through off-market secondary transactions. 

Also, ACCESS’ global timberland impact allocation will be made to the Stafford Carbon Offset Opportunity Fund which establishes new commercial timberland estates, generating returns along with a supply of high-quality offsets for clients. 

“We are honored to establish this landmark partnership with ACCESS in the timberland sector,” said Angus Whiteley, CEO, Stafford Capital Partners. “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.”

Concurrently, JPMAM offers access to a real assets strategy providing diversified exposure to core timberland assets targeting a negative carbon footprint on a global scale through its timberland investor and forestry management company Campbell Global. 

“We are honored to be building on over thirty years of collaboration with the LGPS client base through this new Core Global Timber allocation with the ACCESS Pool,” said Patrick Thonson, EMEA CEO, J.P. Morgan Asset Management. “Our investment strategy aligns with many of the values and objectives of the LGPS, such as income generation, as well as playing a part in the path to net zero and biodiversity conservation.”

Angela Davis, president of Campbell Global, echoed these sentiments, adding, “Campbell Global is delighted to be partnering with ACCESS to add global timberland to their investment portfolio.”

“Our innovative and evidence-based approach is well-aligned, and we look forward to using our 40-plus years’ experience managing forestland to the benefit of the ACCESS Pool.”

She continued, “Timberland and related carbon offsets are unique investments that will offer ACCESS scheme members the ability to further diversify their portfolios while also supporting climate change mitigation and biodiversity protection.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.