Posted by: davidgarnerconsulting | October 5, 2009

Danish Teachers Pension Fund Invest £3.6 Billion Into Forestry

Some 7 per cent of Danish teachers’ pension fund Lærernes Pension is being invested in forestry, it has emerged.

Some DKK2 billion (£243 million) of its DKK30 billion (£3.6 billion) fund has been allocated to the asset class in what is thought to be the most significant European investment in forestry to date.

Paul Brüniche-Olsen, the managing director of the pension fund, said, “we started right back in 2000 and today we have forestry investments around the globe, concentrated in the US, South America and Australia/New Zealand.”

He reported that the investment in forestry has so far produced a stable annual return of 10 per cent. He also says the investment is good for the global environment because it supports forestry, which can help to reduce carbon dioxide in the air and produces wood and woody biomass that can be used for generating alternative energies.

Danish newspaper Jyllandsposten has reported that pension funds in Denmark have invested nearly £1 billion in forestry funds over the past few years and the same amount again is due to be invested within the next three years as the asset class continues to grow in popularity.

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