Nuveen has introduced a timberland fund to its range targeting a net total return of 5-7% per annum.
The Nuveen Global Timberland strategy will invest in sustainable timberland investments in the US, Chile, Uruguay, Canada, New Zealand and Australia. Nuveen said the strategy is a natural climate solution to reduce carbon emissions by producing more timber on less land, reducing emissions through efficient operating practices and sequestering and storing carbon in soil and trees. The Wuppertal Institute for Climate, Environment and Energy estimates global demand for timber will grow by up to 200% by 2050.
Martin Davies, head of Nuveen Natural Capital, said: “Timberland is an intrinsic investment in natural capital assets. With trees storing carbon it is a proven and low-cost technology to remove greenhouse gas emissions from the atmosphere. As economies transition to low carbon, sustainable timber is a crucial material in replacing carbon intensive steel and concrete in building construction. This is one of the many factors that position timberland to deliver both attractive returns and climate solutions for clients.”