Timberland investment as part of a balanced institutional portfolio with Steve Novakovic

Today I’m joined by Steve Novakovic, Managing Director for the Chartered Alternative Investment Analyst Association (CAIA) Curriculum. CAIA serves its international membership across the finance industry enhancing education in relation to alternative investments. From Steve’s wide knowledge of alternative investments, he describes how timberland investment plays a very important role in building a balanced institutional investment portfolio that both serves fiduciary requirements and has strong sustainability features.Show notes:Host: Shauna Matkovich - The Forest Link Timecode Details 00:33 Intro to Steve Novakovic 02:02 Intro to CAIA 02:55 CAIA’s curriculum (limited partners, alternative investments) 05:19 Member organisations 06:12 Investors sentiments around natural capital investment, specifically forestry 09:40 Deliberate decision-making process and how long it takes 11:22 Geographical location of most experience within the asset class 15:09 Sustainability and impact requirements of European investors 17:32 Demand for education in the asset class 22:37 Educational approach about timber investing (TIMO) 24:55 Shift to sustainable investments 26:21 ESG investing 30:15 Expansion of CAIA’s offerings to its members (e.g., understanding value chain) 34:40 Teaching members about sustainability (UN principles of sustainable investments) 38:12 Actionable advice 40:50 Contact details (see below) Significant quotes:[03:02]            For better or for worse, limited partners is kind of what makes the industry run.     [09:40]            The decision-making process is deliberate, really intentionally. As a limited partner you are the steward of capital, you have fiduciary responsibilities for whomever it is you are managing the pool of capital for, and you have to be very cautious and mindful in your investment approach.[19:22]            Timberland is a very low risk investment.[26:18]            From an academic perspective, there is clear evidence that ESG focused are beneficial in that they reduce risk. [28:07]            As a fiduciary, you really are supposed to evaluate investments in the context of risk and return, irrespective of your perspective on the environment or social or governance or so forth.Links mentioned:CAIA Association: https://caia.org/Steven Novakovic: https://caia.org/contact/steven-novakovic-caia-cfaSteven’s LinkedIn: https://www.linkedin.com/in/steven-novakovic-caia/Sound Library:Nature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/SoundcloudSign up now for the ForestLink’s newsletter, where you’ll receive technical advice, reflections, and best-practice guidance to support you with your forest-linked investment strategy or business straight to your inbox. Hosted on Acast. See acast.com/privacy for more information.