High impact investments
In a context of low interest rates and limited growth opportunities, the Group is searching for new investment solutions that enable the portfolio to face future challenges.
Among the solutions identified by the Group, the allocation of capital to Real Assets seems to represent a unique combination of stability, growth potential and risk mitigation.
Real assets are tangible assets with intrinsic value arising from their usefulness. They are characterised by low correlation with traditional equity and bond investments and, due to their usefulness, constitute a natural hedge against inflation risks.
The assets the Group has invested in include:
- the purchase of existing forests able to generate income based on annual logging, which are constantly replanted to maintain the value of the asset until the term of the Fund. The “income” forests (plantations) are also better controlled and managed compared to old-growth forests and therefore have a lower risk of fire and infestation.
- development projects for private companies and rural and urban businesses in Sub-Saharan Africa, with the aim of directly and indirectly giving back to the local population.
Unipol is one of the Italian investors participating in the new Luxemburg-based specialised investment fund (SIF) dedicated to forest investment named Tir Europe Forestry. The fund aims for a net yield of 8-10% per year and has already collected 75 million dollars. It will also invest in certain forests in southeastern USA.