Swiss Life Investment Foundation: successful opening of investment groups

The opening of the real estate investment group carried out from 1is February to March 31, 2022 met with great interest from provident institutions.

The strong demand for investment groups with real assets led to a strong oversubscription of around CHF 250 million at the opening of “Real Estate Switzerland ESG”, and resulted in capital commitments of a amount of 200 million francs at the opening of “Infrastructure Globale (EUR) / (hedged in CHF)”.

“Commercial Real Estate Switzerland ESG” investment group

The opening of the real estate investment group carried out from 1is February to March 31, 2022 met with great interest from provident institutions. The targeted volume of approximately 250 million francs was exceeded on several occasions. A total of 109 pension institutions took part in the opening. The capital will be used to reduce the degree of third-party financing following the acquisition in December 2021 of a high-end portfolio, to acquire further real estate and to make sustainable investments in the portfolio. The rights issue will take place on May 4, 2022.

The “Commercial Properties Switzerland ESG” investment group invests in commercial properties with stable income and value, centrally located and benefiting from favorable yield and value development. The selective development of the portfolio, with a clear focus on quality, has proven itself: since its launch in 2011, the investment group “Commercial Properties Switzerland ESG” has recorded a good performance of 5.16% per year (as of March 31, 2011). 2022). In a difficult market environment, the advantageous distribution of uses as well as the emphasis placed on active rental management are reflected in an occupancy rate of 97%, above the average (status as of March 31, 2022). At the end of March 2022, the investment group had 110 properties with a market value of approximately CHF 2.2 billion.

“Global Infrastructure (hedged in CHF) / (EUR)” investment groups

The two investment groups “Global Infrastructure (hedged in CHF)” and “Global Infrastructure (EUR)” were successfully launched in May 2021 with a subscription volume of around CHF 200 million. The investment groups are designed in an “evergreen structure”, ie without a fixed duration. The focus is on regular and stable distributions from operational activities. Groups are additionally allowed for “Infrastructure Investments” according to OPP 2.

In order to further increase diversification and further expand the portfolio, a second subscription period took place between January 26 and April 22, 2022. Investor interest resulted in new equity capital commitments. an amount of approximately 200 million francs. A total of 57 investors are now invested in the two investment groups, including small and larger pension institutions. Investors thus benefit from exclusive access to global infrastructure investments, in which Swiss Life also participates through its insurance assets and employee pension foundations. The portfolio focuses on infrastructure investments in the areas of renewable energy, supply, waste management, communications, transportation and social infrastructure. ESG aspects are systematically taken into account as part of the investment process defined by Swiss Life Asset Managers.

Stephan Thaler, Managing Director of the Swiss Life Investment Foundation: “The strong demand for our investment groups, even in an uncertain market environment, testifies to the confidence of investors in the high quality of the portfolios and in the long-standing competence of Swiss Life Asset Managers in the management of real-estate investments.”

Responsible investment

Since 2018, Swiss Life Asset Managers has been a signatory to the United Nations Principles for Responsible Investment (UN PRI). At Swiss Life Asset Managers, environmental, social and governance (ESG) factors are systematically integrated into the investment and risk management processes. In investment business with real estate and infrastructure, the corresponding criteria are taken into account both in the context of acquisition and management.

Since 2018, the “Commercial Properties Switzerland ESG” investment group has also participated in the annual benchmark GRESB (Global Real Estate Sustainability Benchmark). Since 2019, the investment group has been awarded the “Green Star” rating every year, which testifies to the good integration of ESG criteria in real estate investments.

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