Lachlan Colquhoun

The investment case for natural assets is growing stronger as institutional investors carve out dedicated allocations for timberland, agriculture and nature-based strategies.

It has been a disappointing few years for alpha strategies on the ASX. With the market dominated by large superannuation funds increasingly favouring passive investment, what does this mean for active management?

Driven by government backing and rising net-zero targets, investors are elevating forestry to a core asset class by pairing commercial timber revenue with carbon credit yields to shield portfolios against market uncertainty.

Superannuation managers are increasing trading frequency, tilting geographically and adding private market exposure as geopolitical shocks, AI disruption and energy politics drive sharper market divergence.