Investment market – Pension funds are obliged to invest their clients’ pensions prudently. Judicious handling of pensions requires a conscientious balancing of risk and return. The «right» proportion – that’s the art of the portfolio mix.
Patrick Mandlehr explains why real estate funds make an attractive investment for pension funds.
Mr Mandlehr, you can draw on a wealth of solid experience in the real estate sector. Why do you feel real estate is an essential component of a multi-asset class portfolio?
Real estate investments have a stabilising effect on a portfolio. They increase returns with comparatively low risk. In today’s environment in particular, with volatile share markets and global uncertainty, real estate investments help protect our pension funds and generate sustainable yields.
The Akara Diversity PK is NAV-based, protected against inflation and tax-exempt. Is it too good to be true?
Not at all. Our track record bears us out: the cumulative performance since launch is well over the KGAST Immo-Index Mixed and the attractive cash yield is consistently above 3%. Our investors, almost 190 pension funds, are happy.
As an asset manager, you cover the full spectrum of real estate services in-house – that is unique for a Swiss fund management company. What potential can you generate for investors from this?
Our success is based on our active management approach and an experienced team that specialises in real estate. For example, we acquired Albisriederstrasse 166, Zurich, in 2017 with calculated investment planning and have successfully operated it over the last five years. We drew up the construction plans, submitted the construction application and smoothed the way for the replacement structure. Our mission was sustainable densification. By 2025, the site will have a timber structure with greater rental space and optimised layout. This creates a new living space for future generations – because an awareness of sustainability and contemporary comfort are not mutually exclusive.
You will open up the fund to new subscriptions again in May?
Yes, that’s right. The next subscription window is 8-26 May 2023. We want to offer investors, both existing and prospective, the opportunity to share in our success.
