SCOOP: Scottish Borders Pension Fund makes foray into natural capital investing

The Scottish Borders Pension Fund has made its first allocation to natural capital assets, with a commitment to Nuveen’s Global Timberland strategy.

The investment, of which the value remains undisclosed, is the latest step in the pension fund’s increased drive towards decarbonising its portfolio and seeking investment solutions targeting both positive environmental and societal outcomes alongside attractive and resilient returns.

The Scottish Borders Pension Fund is part of the national Local Government Pension Scheme (LGPS) and has assets of c.£900m with investments spanning across both traditional and now more alternative asset classes. It represents the interests of local government employees and other related organisations in the Scottish Borders geographic area.

Commenting on the investment, Scottish Borders Council Pension Fund chair and councillor, David Parker, said: “The pension fund’s core objective is to provide our end investors with stable returns and we are increasingly putting their capital to work to drive positive environmental and social outcomes. The Nuveen Global Timberland strategy and its investment philosophy is fully aligned with these ambitions and will help us in our journey towards a more sustainable portfolio.”

The Nuveen Global Timberland strategy seeks to provide consistent, long-term risk-adjusted returns and regular income yields through a portfolio of high-quality timberland assets. Sustainability is at the heart of the strategy’s investment philosophy and provides investors with standardised carbon reporting.

Nuveen UK institutional business development, Matthew Hamber, described the pension fund’s investment as a “milestone” for the strategy. He said it is “further indication that UK institutional investors see the full range of benefits of allocating to natural capital as an asset class”.



Share Story:

Recent Stories


Cyber Risk
In our latest Pensions Age podcast, Laura Blows discusses cyber risk with Aon partner Paul McGlone, and HSBC Pension Bank Trust (UK) trustee chief risk officer, Cheryl Payne.

A changing DC market
In our latest Pensions Age video interview, Aon DC senior partner and head of DC consulting, Ben Roe, speaks to Laura Blows about the latest changes and challenges within the DC sector

Podcast: Who matters most in pensions?
In the latest Pensions Age podcast, Francesca Fabrizi speaks to Capita Pension Solutions global practice leader & chief revenue officer, Stuart Heatley, about who matters most in pensions and how to best meet their needs
Podcast: A look at asset-backed securities
Royal London Asset Management head of ABS, Jeremy Deacon, chats about asset-backed securities (ABS) in our latest Pensions Age podcast

Advertisement Advertisement Advertisement