New opportunities for Swiss Life with German fund rollout
The announcement recently by Swiss Life Asset Managers that it plans to launch its own German-regulated real estate funds, and its securing of a KVG licence by German financial watchdog BaFin, could open up a whole new avenue of opportunity for Switzerland's biggest life insurer in the German real estate sector, beyond that which subsidiary Corpus Sireo has achieved in the healthcare and local regional funds business.
In late-November the Swiss group clinched its business licence for its Swiss Life KVG from Germany's financial supervisor, and seems to be already in the starting blocks to launch German open- and closed-end funds for instituional investors, along with a mutual real estate AIF for private investors. Swiss Life KVG will be managed by Ingo Hartlief and Christine Bernhofer.
Swiss Life had laid the groundwork for its move into German real estate funds with its 2014 acquisition of Cologne-headquartered fund and asset management group Corpus Sireo. CEO Stefan Mächler said in a recent statement, "Together with our German subsidiary CORPUS SIREO, we want to use this to promote business with institutional and private investors in one of Europe’s leading investment markets."
Corpus Sireo already manages €1.7bn of special funds based in Luxembourg, particularly in healthcare funds where it is a market leader, and has a strong local presence right across Germany.
Bernhard Berg, CEO of Corpus Sireo, commented, "With our group's own investment management company, we are adding to our already established range of funds from Luxembourg by setting up German open-ended property funds with innovative investment strategies and funds for institutional investors. We will focus on social megatrends and their effects on real estate markets."
The first fund is expected to be launched imminently, a private 'evergreen' European residential fund. In comments to the media, Swiss Life CEO Ingo Hartlief said "The evergreen fund will focus on residential and commercial property, including senior living facilities. It is set to invest in Germany and elsewhere in Europe in both major cities and in urban peripheral regions on the rise."
He indicated that several further new investment vehicles would be launched in 2017. "For 2017, several new funds are planned via our Swiss Life KVG. The investment products will pick up on social trends, such as our aging society, urbanisation in regional centres and social challenges in the social and health sector." He said that the focus in in Germany would be on A- and B-cities, whereas in other parts of Europe "preference would be for A-cities in economically strong euro and non-euro countries."