Brings investors opportunity to support their climate
objectives
BOSTON, Nov. 10,
2023 /PRNewswire/ - Manulife Investment Management,
the world's largest manager of natural capital with nearly
$15 billion in assets under
management in timberland and agriculture combined, today announced
the initial close of Manulife Forest Climate Fund LP1,2
(FCF or the fund). The fund is a closed-end fund providing
qualified U.S. investors and certain global institutional investors
with the opportunity to promote climate change mitigation through
sustainably managed forests where carbon sequestration is
prioritized over timber production. Along with its affiliated
offshore vehicles, the fund has secured commitments totaling up to
$224.5 million towards its
$500 million targeted offering.
The investment objective of the strategy is to provide investors
with an opportunity to invest in timberlands which will be managed
in a way that seeks to create high quality carbon credits through
enhanced sustainable forest management practices which purposefully
add to the stored carbon in the forest.3 An additional
part of this strategy includes establishing new forests through
afforestation or reforestation to generate high-quality carbon
credits and long-term sustainable timber value. The fund intends to
use carbon credits, conservation easements, non-timber income
generation strategies, and limited timber harvests to capture
potential climate benefits and competitive financial returns for
investors.4
"The broad demand for climate change mitigation solutions can't
be understated and there is strong investor interest in strategies
that may help support carbon emissions reductions and net zero
commitments," said Tom Sarno, global
head of timberland investments, Manulife Investment Management. "We
believe that an investment in Manulife Forest Climate Fund can help
support investors' various climate goals and objectives and
that the experience we have in sustainable forest management, as
well as our commitment to high-quality carbon sequestration,
brings additional value to the strategy."
Manulife FCF will focus on generating a long-term supply of
high-quality carbon credits to be available through direct in-kind
transfers for investors' own climate goals or for purposes such as
monetizing in the carbon markets via offset sales to realize
financial value.4 As a carbon-focused impact investment
strategy, it's the firm's first natural capital fund to be
categorized as a product under Article 9 of the European
Commission's Sustainable Finance Disclosure Regulation (SFDR).
"The Manulife Forest Climate Fund expands on our decades of
sustainable timberland management experience and is one of the
natural climate solutions we have developed to sequester carbon
more intensively and drive broader impact," added Eric Cooperstrom,
managing director, impact investing and natural climate solutions,
Manulife Investment Management. "Responsible commitments to
reducing and removing emissions, inclusive of high-quality forest
carbon credits, are extremely important to help investors meet
their climate and financial goals."
Manulife Investment Management oversees approximately 5.5
million acres of timberland across the
United States, Canada,
New Zealand, Australia, Brazil, and Chile and 100% of those forests are certified
under either the Sustainable Forestry Initiative® (SFI®) or the
Forest Stewardship Council® (FSC®). It also manages approximately
400,000 acres of prime farmland in major agricultural regions of
the United States and in
Canada, Chile, and Australia as part of its comprehensive private
markets strategies. Its entire U.S. agriculture platform is
certified to the Leading Harvest Farmland Management Standard
demonstrating a commitment to sustainable practices, robust
management, and continuous improvement.
1. IPE research as of
2/5/2023. Ranking is based on total Natural Capital AUM, which
includes forestry/timberland and agriculture/farmland AUM. Firms
were asked to provide AUM and the as of dates vary from 12/31/2021
to 12/31/2022.
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2. Manulife Forest
Climate Fund is structured as a private offering only for qualified
purchasers to be conducted pursuant to Rule 506(c) of Regulation D
promulgated under the Securities Act.
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3. Manulife
Investment Management, through its development and implementation
of its Carbon Principles, has made a commitment to sourcing
high-quality carbon credits. Generally high-quality carbon credits
must be (a) additional, (b) not overestimated, (c) permanent, (d)
exclusively claimed (no double counting) and (e) not associated
with significant social or environmental harm. For more information
on the Carbon Principles please visit our website. In
addition, the Integrity Council for the Voluntary Carbon Markets
(IC-VCM) Core Carbon Principles (CCPs) and Assessment
Framework are intended to establish global standards for
high-quality voluntary market carbon credits, provide guidance on
how to apply the Core Carbon Principles and define which carbon
crediting programs and project methodologies are eligible. The
MIMTA Carbon Principles are aligned with the ICVCM CCPs.
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4. There is no
guarantee that this fund will achieve its investment objectives or
goals, or generate carbon credits or financial returns.
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This press release is targeted to U.S. qualified purchasers.
It does not constitute an advertisement or an offer to sell any
security or the solicitation of any offer to buy an interest in the
fund or any existing or future fund or investment vehicle managed
or advised by Manulife Investment Management and/or its affiliates
or any other security. Nor shall there be any sales of the fund
interests in any jurisdiction in which such offer, solicitation or
sales would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction.
The fund interests will be offered only to "qualified
purchasers" as defined by Section 2(a)(51) of the Investment
Company Act and in reliance on the exemption from registration set
forth in Rule 506(c) of Regulation D promulgated under the
Securities Act. Under Rule 506(c), general solicitation of
offerings is permitted, however, prospective investors in the fund
may be asked to provide supporting documentation satisfactory to
the general partner of a prospective investor's status as a
qualified purchaser. The fund has not been and will not be
registered under the Securities Act or the securities laws of any
state or other jurisdiction, and may not be offered or sold without
registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities
or blue sky laws and foreign securities laws.
The fund will be distributed in the
United States by John Hancock Investment Management
Distributors LLC, member FINRA, a Manulife IM affiliate.
Private market investments are speculative and considered
risky, including potential loss of your investment, and may not be
appropriate for every investor. Private investments are generally
an illiquid asset class; shareholders cannot sell their fund
interests when they want to without potentially facing high
losses.
About Manulife Investment Management
Manulife Investment Management is the brand for the global
wealth and asset management segment of Manulife Financial
Corporation. Our mission is to make decisions easier and lives
better by empowering investors for a better tomorrow. Serving more
than 17 million individuals, institutions, and retirement plan
members, we believe our global reach, complementary businesses, and
the strength of our parent company position us to help investors
capitalize on today's emerging global trends. We provide our
clients access to public and private investment solutions across
equities, fixed income, multi-asset, alternative, and
sustainability-linked strategies, such as natural capital, to help
them make more informed financial decisions and achieve their
investment objectives. Not all offerings are available in all
jurisdictions. For additional information, please visit
manulifeim.com.
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SOURCE Manulife Investment Management