Denmark鈥檚 Sampension is investing DKK1bn (鈧�134m) in forestry assets in the south-eastern US, via timberland manager Resource Management Service (RMS), adding to its already large exposure to this asset type.
The labour-market pension fund said that before this commitment, it already had DKK4.2bn of forestry assets - over 177,500 hectares of land, saying it had a special focus on such investments in the US and, secondarily, in Australia.
Henrik Olejasz Larsen, CIO at Sampension, said: 鈥淲e have been investing in forests for a number of years and have an ongoing focus on expanding our investments.鈥�
Forestry assets, in the same way as investments in infrastructure and real estate, were a good alternative to bonds, he said, and could also provide a stable, long-term return with limited risk, while also contributing to risk diversification in Sampension鈥檚 portfolio.
Olejasz Larsen said Sampension wanted to gain exposure to the southern US forestry market - as the world鈥檚 largest for woodland - adding that the wood produced was mainly being used for housebuilding, which was a booming sector in the US currently.
鈥淎t the same time, the area in the US South is well-positioned to capitalise on the major planned expansions of the number of sawmills in the area that are declining products,鈥� the CIO said.
Sampension, which manages DKK295bn of assets, made its first direct forestry investment over two years ago, in a forest in Oregon, US, putting 鈥渁 triple-digit million Danish krone amount鈥� into the assets.
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