From the Vault: An Institutional Investor’s Approach to Forest Investment - with Jasper Renk of MEAG
From the Vault - Jasper Renk
MEAG [https://www.meag.com/]
MEAG on LinkedIn [https://www.linkedin.com/company/meag/]
Jasper Renk on LinkedIn [https://www.linkedin.com/in/jasper-renk-676ba01/]
Favourite trees: Spruce [https://en.wikipedia.org/wiki/Spruce]
In this rerun, I’m joined by Jasper Renk, Senior Investment Manager for Illiquid Assets in Natural Capital at MEAG. In this advice-packed episode, Jasper shares MEAG’s 15-year experience in investing in Timberland. He explains the most critical determining factors in deciding MEAG’s forest investment jurisdictions and describes how the organisation is well equipped to address climate risks, sitting on 140 years of climate data. Jasper shares his thoughts on how to house your forest investment and sheds light on why forest investment isn’t the most suitable for debt instruments. We talk about sustainability and how it is a core tenant of how they invest, emphasising that prioritising sustainability reduces risk and secures return expectations.
QUOTE
> So what I'm getting at is that for us to retain the environmental functions and to retain a functioning ecosystem, that then. in turn, provides a renewable resource such as roundwood to the market – to retain that even in changing climates. It's not something that we must balance against return, but that ensures that in 10,20, 50, 100 years, we will still be able to provide that resource to the market. This is kind of the difference maybe in our thinking as opposed to some other market participants.
> Essentially, it goes hand in hand.
PRODUCTION TEAM
Host: Shauna Matkovich - The ForestLink [https://theforestlink.com/]
Producer and editor: Magdalena Laas - Unscripted Creatives [https://www.linkedin.com/in/laasmagdalena/]
DETAILS
01:02
Background to MEAG & Jasper
04:06
Decision to move into timberland investments
05:11
MEAG's perception of timberland allocation performance
07:58
Shift in how assets are housed in portfolio
10:51
Learning curve for institutional investor
12:52
Risk-reduced way to gain exposure
13:44
Best instrument to get started (and trajectory)
16:33
Risk return profile of MEAG
19:22
Operational side of owned forest assets
22:57
Functioning transactional market
24:38
Investment vehicles, e,g. debt instruments
27:45
Sustainability
32:00
Sustainability objectives
34:28
Beneficiaries stand on sustainability
39:08
Actionable advice
39:50
Contact details
SOUND LIBRARY
Nature by MaxKoMusic/Soundcloud
Sopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud
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