New Forests Launches Global Natural Capital Strategy

New Forests, a prominent investment manager specializing in nature-based real assets, has introduced its inaugural global strategy, the Global Landscape Opportunities (GLO) initiative. This new fund aims to consolidate the firm's two decades of regional investment experience into a unified, worldwide portfolio. The GLO strategy will target diverse opportunities spanning forestry, agriculture, and emerging markets like carbon credits and biodiversity offsets across key geographies including North America, Europe, Australia-New Zealand, Latin America, Southeast Asia, and Africa.

The establishment of the GLO strategy in Luxembourg is a direct response to a significant upswing in investor appetite for institutional-grade, globally diversified natural capital allocations. Capital markets are increasingly recognizing the intrinsic value of land-based assets for their potential to provide inflation resilience, portfolio diversification, and robust long-term real returns, all while contributing to positive environmental outcomes. This strategic move by New Forests positions them to capture this growing demand from institutional investors such as pension funds, insurance companies, family offices, endowments, and foundations.

Mark Rogers, Chief Executive Officer of New Forests, highlighted the strategic importance of this launch. "The introduction of our Global Landscape Opportunities strategy represents a pivotal moment in New Forests' development as a global natural capital investment manager," stated Rogers. "We are observing substantial investor interest in scalable, institutional strategies that offer broad exposure to natural capital. This strategy directly addresses that demand by leveraging our global operational platform, deep investment acumen, and proven track record into a singular, comprehensive offering." He further emphasized that natural capital is now viewed as a fundamental element of resilient investment portfolios, capable of generating long-term returns and supporting critical global objectives like climate stabilization, biodiversity preservation, and sustainable land management.

David Shelton, Global Head of Investments at New Forests, elaborated on the strategic advantage of a global approach. "Historically, many investors have accessed natural capital through regional investments. However, not all institutions possess the necessary scale, resources, or specialized expertise to construct and manage global portfolios independently," Shelton explained. "Building upon New Forests' established regional performance, this strategy empowers investors to gain access to a globally diversified portfolio. We will actively manage capital allocation across various regions, sectors, and markets to optimize investment outcomes." Shelton also pointed out the compelling investment characteristics of natural capital, including attractive long-duration return profiles, effective inflation hedging capabilities, and low correlation to traditional asset classes, in addition to providing exposure to fundamental global needs for food, fiber, renewable energy, and ecosystem services.

The GLO strategy's asset allocation is designed for broad diversification. A significant portion, between 60% and 80%, will be allocated to developed markets including the United States, Canada, Europe, the United Kingdom, Australia, and New Zealand. Developed Latin American markets, specifically Brazil, Uruguay, and Chile, are slated to receive up to 30% of the portfolio. Emerging markets such as Southeast Asia, other Latin American regions, and Africa will constitute up to 20% of the investment mandate. This diversified approach aims to mitigate risk while capturing opportunities across different economic cycles and geographies, reflecting the increasing sophistication of natural capital investing.

The launch of the GLO strategy underscores a broader market trend where institutional investors are increasingly seeking tangible assets that offer both financial returns and positive environmental and social impacts. As the world grapples with climate change and resource scarcity, investments in sustainable forestry, agriculture, and ecosystem services are gaining traction. New Forests' move to offer a global, integrated solution caters to this evolving investor demand, providing a structured pathway to participate in the growth of the natural capital sector, which is projected to expand significantly in the coming years as markets mature and regulatory frameworks evolve to better value environmental services.