Stockholm (NordSIP) – Finnish Emerging Markets specialist FIM Asset Management is launching FIM Skog (“FIM Forest”) in Sweden this fall, a brand new fund that will invest directly in forest properties. Professional Investors will have the opportunity to effectively diversify assets in alternative investment objects through the fund.
Last week, FIM AM also changed the statutes and investment orientation of its FIM BRIC+ fund, also resulting in its imminent name change to FIM Emerging Markets ESG.
FIM Skog is a special investment fund in raw materials that traditionally invests its assets in forest properties in various parts of Finland, and which will now be sold in Sweden. As the fund invests directly in forest properties consisting of land areas and trees, it will be offered exclusively to professional investors.
“The forest is a good investment object, which means less risk than, for example, equity placement,” said fund manager Timo Hakulinen. “Even if there’s a recession, forests continue to grow.”
It follows that forests yield a stable return through tree growth and a steady cash flow in the form of crop yields, compared to the stock market. FIM Skog is therefore intended to facilitate the process for institutional investors to invest in forests.
Mr Hakulinen believes that forests are a good asset especially for those investors wishing to diversify their investments, as they offer relatively good expected returns with low risks. As forests historically represent a concrete investment, returns are not so heavily dependent on developments in bond markets. “The fund is suitable for long-term investors who want to spread their investments more than in interest, equity and housing investments,” he says.
FIM and domestic industry experts will be responsible for the purchase, sale and maintenance of forest properties. A portion of the forests in the fund’s portfolio will be managed by Innofor, which is committed to forest care without deforestation.
“The fund will ensure the effective management of these forests by taking into account the high ethical requirements in the use of natural resources expected of investors today. FIM will aim for a sustainability level that can be an example even abroad. Our objective is a welcome enjoyment of their forests for everyone who invests in the fund,” said Innofor Chairman of the Board Marcus Walsh.
Timo Hakulinen believes investors will be able to benefit from size benefits, as the fund actively seeks to streamline investments by focusing on the purchase of forests, forestry and forest trade. Buying wood in large lots is cheaper, with the same applying to the sale of forests.
“The Forest Fund is a trouble-free and rewarding way of investing. The investor is free of the duty of taking care of the forest, but can enjoy all the benefits of owning it. FIM’s forest team, together with the soil, climate and sunlight, will ensure returns on investment,” Hakulinen offers.
FIM Skog will only be available to professional investors in Sweden. Fund shares can be subscribed to quarterly and redeemed bi-annually. The minimum initial investment is SEK 1 million.
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