Tallahassee commits to forestland manager
The City of Tallahassee (Fla.) Pension Plan has committed $30 million to Molpus Woodlands Group to be the pension plan’s first timber manager.
“We looked at some timber managers over a six-month period, and we were quite fond of Molpus, and we had an opportunity to invest with them so we did,” explains Kent Olson, deputy treasurer clerk of the city of Tallahasee.
The pension plan raised its target allocation to timber from 0 percent to 5 percent in November 2013, which would leave about $70 million of the $1.4 billion pension plan’s assets open for timberland investment. The firm will reportedly hire two more timber managers to reach its target allocation, one in 2015 and another 2016.