Swiss Life Asset Managers launches open-ended mutual property fund “Swiss Life European Living” and acquires starting portfolio in Germany
The fund invests in residential properties in European metropolitan regions
Deka will sell the fund exclusively via German savings banks (Sparkassen)
A starting portfolio consisting of 533 residential units in North Rhine-Westphalia and
Swiss Life Asset Managers has launched the open-ended mutual property fund “Swiss Life REF (DE) European Living” under German law via Swiss Life Kapitalverwaltungsgesellschaft mbH (Swiss Life KVG). The investment fund is entering the market with the short name “Swiss Life European Living” and is aimed at German private investors. The fund launch took place on 10 October 2019. In Germany, units have been on sale exclusively via Deka and thus via German savings banks since 22 October. “Swiss Life European Living” is aiming for a performance of more than 2% (according to the BVI calculation method – German Investment Funds Association).
Tina Störmer, CEO of Swiss Life Asset Managers in Germany, says: “European Living is our first pan-European residential property fund for private customers. Its aim is to generate stable income on a long-term basis and manage opportunities and risks responsibly. This new product therefore also follows our company’s guiding theme of independent living.”
Christine Bernhofer, COO of Swiss Life Asset Managers in Germany and CEO of Swiss Life KVG, says: “The cooperation with Deka for marketing European Living represents a win for both sides: We are combining the real estate and fund expertise of Swiss Life Asset Managers with Deka’s strong product expertise and close-knit sales network. Investors in the fund also benefit from excellent access to properties via Swiss Life Asset Managers’ local real estate units in the key European property markets.”
“Swiss Life European Living” invests in residential properties in European metropolitan regions. In the medium term, the fund management intends to build up a target real estate portfolio consisting of residential properties in the mid-price segment. There is also a focus on properties geared towards different user groups such as students, young professionals or commuters. The first purchase for the “Swiss Life European Living” fund has already been made through the acquisition of a German residential portfolio with a total of 533 residential units. The housing stock in Duisburg, Düsseldorf, Frankfurt, Cologne and Wuppertal constitutes the starting portfolio for “Swiss Life European Living”. The properties are fully let except for the usual level of vacancy due to fluctuation.
For Swiss Life KVG, this is already the second open-ended mutual property fund under German law it has launched in the space of three years. At the end of 2016, it launched its first mutual property fund, “Living and Working”, which reached a volume of more than EUR 500 million within around two and a half years. As of 31 August 2019, the return was 3.3% per annum (according to the BVI calculation method).
Cologne-Ehrenfeld 83 units, 1 retail and 48 parkinglots (Photo Credentials: Swiss Life Asset Managers - Karime Benzakour Knidel)
Swiss Life Asset Managers
Swiss Life Asset Managers has more than 160 years of experience in managing the assets of the Swiss Life Group. This insurance background has exerted a key influence on the investment philosophy of Swiss Life Asset Managers, which is governed by such principles as value preservation, the generation of consistent and sustainable performance and a responsible approach to risks. That’s how we lay the groundwork for our clients to make solid, long-term plans – in self-determination and with financial confidence. Swiss Life Asset Managers offers this proven approach to third-party clients in Switzerland, France, Germany, Luxem-bourg and the UK.
As at 30 June 2019 assets under management for third-party clients amount to EUR 71.6 billion. Together with insurance assets for the Swiss Life Group, total assets under management at Swiss Life Asset Managers stood at EUR 225.0 billion.
Swiss Life Asset Managers is the leading real estate manager in Europe1. Of the assets totalling EUR 225.0 billion, EUR 60.5 billion is invested in real estate. In addition, Swiss Life Asset Managers has real estate under administration of EUR 26.0 billion through its subsidiaries Livit and Corpus Sireo. Total real estate under management and administration at the end of June 2019 thus came to EUR 86.5 billion.
Swiss Life Asset Managers employs about 2300 people in Europe.