Florida set to move on timber investments

The $141.8 billion Florida State Board of Administration has finalised a list of six timber managers, as it moves towards allocating capital to the timber asset class, as part of its strategic investments allocation.

The six managers were selected from a shortlist of 10, by the fund’s staff, alongside consultant The Townsend Group.

The fund can allocate up to 10 per cent to strategic investments, its current allocation sitting at about 3.8 per cent.

The Florida Retirement System, which at $121 billion, is the largest fund managed by the board, returned 34 per cent for the year to the end of March, beating its benchmark by 36 basis points.

Its asset allocation is 38.83 per cent domestic equities, 19.99 per cent foreign equities, 25.25 per cent fixed income, 1.99 per cent high yield, 6.02 per cent real estate, 3.55 per cent private equity, 3.72 per cent strategic investments and 0.64 per cent cash.