Dutch healthcare pension fund PGGM to invest US$200M over 15 years in sustainable plantation forestry, via GMO Long Horizons Forestry Fund
ZEIST, Netherlads , July 6, 2007 (press release) – PGGM is investing in sustainably managed forestry plantations. The pension fund has awarded its first mandate in this sector to US asset manager GMO. The mandate is for an investment of USD 200 million (around EUR 150 million) for a term of 15 years, which may be extended by five years.
Under this mandate, PGGM is participating in the GMO Long Horizons Forestry Fund, which invests in forestry plantations in North and South America and the Asia/Pacific region. The fund envisages investing primarily in forestry projects that qualify for FSC certification. GMO’s global experience in the forestry sector makes it a good fit with PGGM’s investment portfolio.
Forestry is a stable investment, not least because trees grow regardless of economic cycles. Timber is one of the few commodities that have appreciated faster than inflation over the long term.
PGGM expects to earn a good long-term return on this mandate. The pension fund takes environmental, social and corporate governance factors into account in its investment decisions.
PGGM provides a pension scheme for over two million employees and former employees in the healthcare and social work sector and currently has invested capital of almost EUR 85 billion.