KPA Pension, part of Folksam Group, has invested a total of SEK 450m (€42.6m) in a green forest fund, it has revealed.
In total Folksam Group has invested SEK 1bn (€94.7m) in the Silvestica Green Forest Green Forest Fund made up of SEK 450m (€42.6m) from KPA Pension, SEK 440m (€41.7) from Folksam Life, and SEK 110m (€10.4m) from Folksam Sak.
The fund manages and processes forest holdings responsibly and sustainably in order to achieve high value growth and a stable direct return.
Commenting, Folksam Group head of asset management and sustainability, Michael Kjeller, said: “Forest investments contribute to sustainable development and are also interesting from an investment perspective as it is a real asset with low volatility. The investment in Silvestica Green Forest provides a good risk-adjusted return on the total asset portfolio, which is important for our customers.”
The fund was created in 2017, and at the end of 2019, total investments amounted to SEK 1.6bn, spread over 54,000 hectares. The fund makes investments in forests in the Baltic Sea area, most of which are in Sweden and Finland.
The fund is also now fully subscribed with a total commitment of SEK 5bn.
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