Diapason Commodities Management, a Swiss commodity investment firm, has said that it will launch ForestCare Investment Fund, an institutional product investing in tangible forestry assets.
The new fund will cover forest plantations and resulting activities and services such as forest management, wood production and processing, and all investments will be subject to a strict environmental, social and governance (ESG) filter prior to being included in the portfolio.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The fund will take a multi-asset class approach, investing in equities, bonds, forest plots, and forest-related derivatives.
As well as the ownership and operation of European forest plots, the fund will also invest in shares and bonds of companies operating responsibly in the forestry industry, as well as bonds of public and private sector debtors issued to finance projects in this sector.
Also included will be forest-related derivatives and other investment instruments related to the forestry theme, including biodiversity credits, credits related to mitigating deforestation (REDD credits) and carbon credits.
Diapason Commodities Management MD, Mark McDonnell, said: "ForestCare is a completely new way of approaching investment in forestry and with our approach to bio-diversity in forests this investment opportunity has forest sustainability at its core.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData" Crucially, the fund is structured to reconcile economic profitability with the need to make intelligent use of natural resources – providing investors with a diversified portfolio which is uncorrelated with other asset classes," McDonnell said.
ForestCare is aimed at the pension fund and institutional investor market and will have three monthly liquidity and a minimum investment of EUR125,000 for the A class and EUR1 million for institutional class.
