Manulife Investment Management Launches Forest Climate Fund

Manulife Investment Management has announced the launch of Manulife Forest Climate Fund, LP1 (FCF or the fund), which is a closed-end fund providing qualified US investors with the opportunity to promote climate change mitigation through sustainably managed forests where carbon sequestration is prioritised over timber production.

The fund, which along with its affiliated offshore vehicles is targeting US$500 million in committed capital, will be invested in a globally diversified portfolio of sustainably managed forestland assets.

Manulife Investment Management may seek to provide opportunities for professional investors in certain other jurisdictions, to be able to invest in the Forest Climate Strategy.

As such, Manulife Investment Management is seeking to ensure that the strategy, if offered outside of the United States through an offshore feeder fund, will comply with the requirements of Article 9 of the EU Sustainable Finance Disclosure Regulation.

To achieve its goals, Manulife FCF will focus on acquiring forests with strong carbon potential and high conservation value, in addition to implementing sustainable forest management plans, allowing the fund to deliver durable, high-quality carbon value to investors through carbon credits.  

The fund intends to use carbon credits, conservation easements, value-added strategies, and limited timber harvests to generate high-integrity climate benefits and financial returns for investors.

Eric Cooperström, managing director, impact investing and natural capital solutions, Manulife Investment Management said: “We are excited to bring a product to investors that we have developed by capitalising on our decades of experience in sustainable timberland management and on our carbon market expertise.”

“As of June 30, 2022, our integrated timberland management operations comprise nearly 6 million acres under management across six countries and more than 100 individually managed properties, which allows for alignment of investors’ environmental, sustainable, and financial interests and greatly enhances the potential opportunity to deliver value.”                                                                                                            

The fund will pursue carbon insets through sequestration embedded within the investment portfolio, with the objective to provide investors with long-term supplies of high-quality carbon credits aligned with Manulife Investment Management’s carbon principles and lower exposure to market volatility.

Manulife Investment Management’s current portfolio of sustainably managed forestry assets is internationally diversified across the United States, Canada, Australia, New Zealand, and South America.

#CarbonCredits #ClimateChange #Sustainableforests