The Campbell Group, Hawthorne Timber,
and United Asset Management
The Campbell Group, Inc. is a timber investment management firm headquartered in the Pacific Northwest. The Campbell Group is a subsidiary of United Asset Management Corporation of Boston. The Hawthorne Timber Company, LLC is an investment entity managed and partially owned by the Campbell Group.
The Campbell Group
Founded in 1981 by Ducan Campbell for timberland acquisition and to provide timberland management services for investors such as public and private pension funds. In 1986 timberland assets under management were $4.5 million, and by 1997 had grown to $1.3 billion.
A note on institutional investment in timberlands:
The Campbell Group "creates value for its clients by acquiring high quality properties and managing them to optimize financial return. Returns to clients have exceeded 30% since inception." "However, The Campbell Groupís core business strategy has always been, and will continue to be, 100% focused on the acquisition, management and disposition of timberland assets. The firm does not own or operate conversion facilities, and has no conflicts of interest."
At the end of calendar year 1997, we managed over 600,000 acres of timberland in Oregon, California, Washington and British Columbia. We have intensively managed merchandised log sale programs for our clients that have generated over $150 million in revenue per year. Our log harvesting, sorting, merchandising, and marketing efforts enhance return and cash flow for our clients. In 1989, United Asset Management Corporation (UAM) acquired the stock of The Campbell Group; however, direction of the firm and its daily operations remains with the principal officers of The Campbell Group. UAM is a publicly-owned Company whose stock is traded on the New York Stock Exchange.
In December 1998, The Campbell Group finalized the purchase of 117,000 acres of forest lands (on behalf of an undisclosed investor) from Willamette Industries. The property is located in Pacific, Wahkiakum, Cowlitz and Lewis counties in Southwest Washington and includes a chipping plant and office located in Cathlamet, Washington. The property will be held in a timberland REIT and owned by Cathlamet Timber Company. It will be managed by The Campbell Group. Willamette Industries acquired these assets as part of a larger timberland purchase from Cavenham Forest Industries in 1996. In September 1998, Willamette announced plans to sell the forest lands as they were not critical to the companyís Northwest operations.
In September 1999, California Public Employeesí Retirement System (CalPERS) today selected Hancock Timber Resource Group of Boston, Massachusetts and The Campbell Group of Portland, Oregon to manage the Systemís $1.2 billion timberland portfolio -- one of the largest privately held timber portfolios in the United States. The Committee also selected UBS Brinson Partners to help the System invest in timberland outside the United States. All contract awards are contingent upon satisfactory completion of contract negotiations. Hancock will manage more than 669,000 acres of timber valued at approximately $814 million located in the Northeast and South regions of the United States. The Campbell Group will manage more than 222,000 acres of timber in the Northwest valued at $439 million. In an effort to seize promising opportunities in the timber markets abroad, CalPERS will work with UBS Brinson Partners of West Lebanon, New Hampshire to develop a strategic plan for future timber purchases internationally. Currently, CalPERS policy on timber investments allows for up 10 percent of the Systemís timber portfolio to be invested internationally. The structure of the timber portfolio manager contracts will be modeled after CalPERS core real estate program. The pension fund will achieve alignment of interest with each timber manager through provisions such as co-investments, dedicated management teams and incentive fees. In return, timber managers will be given the investment discretion necessary to carry out a timber investment strategy approved by CalPERS. CalPERS is the nationís largest public pension fund with assets totaling nearly $160 billion. The System provides retirement and health benefits to more than 1 million state and public employees and their families.
In December 1999, Hawthorne Timber Company, LLC (an investment entity managed and partially owned by The Campbell Group) acquired 194,000 acres of Humboldt and Mendocino county California timberlands from Georgia-Pacific for $397 million.
United Asset Management
211 Congress Street, Boston, MA 02110
telephone 617-330-8900 or 800-451-6466
UAM also has offices in Amsterdam, Netherlands; Orlando and West Palm Beach, Florida; San Antonio, Texas; Salt Lake City, Utah; San Francisco, California.
One of the largest independent investment management organizations in the world, United Asset Management Corporation provides a broad range of investment management services to institutions, mutual funds and high-net-worth investors. These services are offered through a diverse group of operating firms that managed approximately $193.6 billion on September 30, 1999 for clients located throughout the United States, Canada and abroad.
UAM's firms manage U.S. and international investment portfolios for corporate benefit plans, mutual funds, government and union benefit plans, individuals, endowments, professional groups, and foundations.
UAM was begun in 1980; its initial public offering of stock was in 1986. Its UAM Funds was established 1989. Assets managed by UAM topped $100 billion in 1994. In 1996, UAM Investment Services, Inc., which markets the investment services of UAM affiliates to large institutional clients, reached agreements with its first large institutional partners--MetLife and Nationwide Insurance--for whom it provides 27 investment portfolios managed by 15 UAM investment management affiliates.
The UAM Fund group is comprised of over 40 different mutual funds managed by over 20 independent, autonomous investment affiliates:
Acadian Asset Management, Inc.
Analytic Investors, Inc.
Barrow, Hanley, Mewhinney & Strauss, Inc.
Cambiar Investors, Inc.
The Campbell Group, Inc.
Chicago Asset Management Company
Clay Finlay Inc.
Colony Capital Management, Inc.
Cooke & Bieler, Inc.
Dewey Square Investors Corporation
Dwight Asset Management Company
Expertise Asset Management Fiduciary Management Associates, Inc.
First Pacific Advisors, Inc.
GSB Investment Management, Inc.
Hanson Investment Management Company
Heitman Financial LLC
Hellman, Jordan Management Company, Inc.
Integra Capital Management Corporation
InvestLink Technologies, Inc.
Investment Counselors of Maryland, Inc.
Investment Research Company
Jacobs Asset Management
Tom Johnson Investment Management, Inc.
L&B Realty Advisors, Inc.
Lincluden Management Limited
C. S. McKee & Company, Inc.
Murray Johnstone Limited
Nelson, Benson & Zellmer, Inc.
Northern Capital Management, Inc.
NWQ Investment Management Company
Pacific Financial Research, Inc.
Palladyne Asset Management B.V.
Pell, Rudman & Co., Inc.
Pilgrim Baxter & Associates, Ltd.
Provident Investment Counsel
Rice, Hall, James & Associates
Rogge Global Partners Plc
Rothschild/Pell Rudman, Inc.
J.R. Senecal & Associates Investment Counsel Corp.
Sirach Capital Management, Inc.
Spectrum Asset Management, Inc.
Sterling Capital Management Company
Suffolk Capital Management, Inc.
Thompson, Siegel & Walmsley, Inc.
Thomson Horstmann & Bryant, Inc.
UAM Fund Services, Inc.
UAM Board of Directors
Harold J. Baxter, Chairman and Chief Executive, Officer, Pilgrim Baxter & Assoc., Ltd. , Wayne, Pennsylvania.
Francis Finlay, Co-Chairman and Chief, Executive Officer, Clay Finlay Inc., New York, New York.
Robert J. Greenebaum, Retired Treasurer, Inland Steel Company, Chicago, Illinois.
Charles E. Haldeman, Jr., President and Chief Operating, Officer, United Asset Management, Corporation, Boston, Massachusetts.
Beverly L. Hamilton, President, ARCO Investment Management, Company, Los Angeles, California.
George E. Handtmann, III, Executive Managing Director, Provident Investment Counsel, Pasadena, California.
Bryant M. Hanley, Jr., President, Barrow, Hanley, Mewhinney &, Strauss, Inc., Dallas, Texas.
Jay O. Light, Senior Associate Dean and, Professor, Harvard Business School, Boston, Massachusetts.
Norton H. Reamer, Chairman of the Board and, Chief Executive Officer, United Asset Management, Corporation, Boston, Massachusetts.
David I. Russell, Consultant, London, England.
Philip Scaturro, Executive Vice President and, Managing Director, Allen & Company Incorporated, New York, New York
John A. Shane, President, Palmer Service Corporation, Woburn, Massachusetts.
Barbara S. Thomas, Executive Chairman, Whitworths Group Ltd., London, England.