Swiss Life Asset Managers has announced the launch of the Swiss Life European Living open-ended mutual property fund under German law via its KVG arm.
The investment fund is aimed at German private investors and is targeting a performance of more than 2% (according to the BVI calculation method – German Investment Funds Association).
In Germany, units have been on sale exclusively via Deka and thus via German savings banks since 22 October.
Tina Störmer, CEO of Swiss Life Asset Managers in Germany, said: '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, added: '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 but is also open to investment in properties geared towards different user groups such as students, young professionals or commuters.
The first purchase for the fund is the acquisition of a German residential portfolio with a total of 533 residential units. The housing stock in Duisburg, Düsseldorf, Frankfurt, Cologne and Wuppertal is 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 €500 mln. As of 31 August 2019, the return was 3.3% per annum (according to the BVI calculation method).