Swedish insurer invests SEK 1bn in green forest fund

Written by Michael Griffiths

20/01/2020

Swedish insurance company, Folksam Group, has announced it is investing SEK 1bn in the Silvestica Green Forest Green Forest Fund.

Folksam Group said the fund manages and processes forest holdings responsibly and sustainably in order to achieve high value growth and a stable direct return, suggesting the fund has provided returns ‘according to plan’ since its inception, and now continues to expand.

Since launching in the summer of 2017, Silvestica Green Forest has developed rapidly and the total investments amounted to approximately SEK 1.6bn at the end of last year, spread over 54,000 hectares.

The fund makes investments in forests in the Baltic Sea area – most of which are in Sweden and Finland.

As a result of the rapid investment rate, Folksam Group suggested an increased commitment from the investors has become ‘necessary’ and the fund is now fully subscribed with a total commitment of SEK 5bn.

Folksam Group head of asset management and sustainability, Michael Kjeller, commented: “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.”

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