RE-Invest Partners unveils forestry fund for UK pension schemes
UK - RE-Invest Partners has teamed up with Consortium IM to launch a series of exempt unit trusts (EUTs) providing access to the RE-Forest Fund SICAR, a global forestry fund.
RE-Invest Partners, a European specialist in forestry and sustainable-resources investment, said the EUTs were the first registered in the UK for international forestry investment.
The vehicle's sole investment is the Luxembourg-domiciled SICAR, buys land and plantations in Europe, Africa, South America and Asia Pacific.
The fund will manage various tree species, such as teak, conifer and eucalyptus, to diversify revenues across a number of product markets.
Marc Hempel, chief executive at RE-Invest Partners, said demand for timber was growing, particularly in the emerging markets.
He said: "With better control and less destruction of native forest, and thus less timber coming out, the demand for plantation forestry is solidly entrenched.
"This is the first time smaller UK retirement schemes will be able to access an international forestry portfolio."
RE-Invest said the fund aims to deliver low-risk, stable returns of 10-12% a year through natural timber growth and harvesting, with the possibility of boosting returns by supplying raw material to the markets for biomass and carbon off-setting schemes.