The Swiss Life Asset Managers’ European Thematic Income & Growth Fund1, a Luxembourg SICAV structure, with a diversified core/core-plus portfolio strategy, focuses on macro allocation and micro asset selection – as well as nimble asset management – to benefit from opportunities in the rapidly-evolving market environment for real estate.
Swiss Life Asset Managers has committed significant long-term capital to the fund that will provide stability, scale and close alignment with third-party co-investors. Swiss Life Asset Managers’ considerable resources and financial commitment ensures the fund can access and participate in the most attractive investment opportunities across Europe from launch.
Swiss Life Asset Managers’ London unit to provide investment advice for the fund
Investment advisory for the strategy will be led by the London team of Swiss Life Asset Managers at Mayfair Capital under the guidance of Senior Fund Manager Maureen Mahr von Staszewski. The fund will benefit from market-leading resources and local expertise covering all European markets, with particular strength in the largest and most liquid markets of Germany, France and the UK.
Mayfair Capital is a leading specialist real estate manager having consistently served its investors since 2003. The new fund complements the team’s existing UK Thematic Growth Fund that was successfully launched in 2018. Mayfair Capital also manages a number of institutional mandates, as well as the UK’s best performing fund over 10 years in the MSCI/AREF UK All Balanced Property Funds Index (30 Funds), the Mayfair Capital Property Income Trust for Charities (PITCH).
Fund allocation and investment style to reflect new realities of European real estate markets
At a macro level, the investment advisors are targeting resilient pan-European economies, as well as diversified and liquid sectors. The strategy has initial target allocations of 60% to the large and liquid German and French markets, with a further 10% initially allocated to the UK and the remainder across strong markets in other European economies. As for sector allocation, the strategy will target an approximate 40% allocation to offices, 25% to industrial, 10% to retail and 25% to residential and other maturing segments. The team will maintain dynamic flexibility to adjust the mix over time to reflect further evolution in the underlying European real estate market.
At the individual investment level, the investment advisor will seek, within the core to core-plus range, to harness the numerous thematic drivers currently underway across European markets. These themes are bracketed into five groups of Connectivity, Communities & Clustering, Consumers & Lifestyle, Change & Disruption, as well as Climate & Environment.
Stefan Mächler, Group CIO of Swiss Life, comments:
“With Swiss Life’s exceptional heritage of real estate investing over 120 years, we are delighted to bring the Swiss Life Asset Managers’ European Thematic Income & Growth Fund (TIGR) to the international institutional investment market. We are pleased to support this strategy with significant balance sheet allocation alongside our clients. We believe that our dynamic, differentiated management style for diversified open-ended fund investment will appeal to investors such as pension funds, insurance companies and other international institutions seeking an attractive and sustainable long-term return from European real estate.”
Maureen Mahr von Staszewski, Senior Fund Manager, Swiss Life Asset Managers / Mayfair Capital, comments:
“The TIGR strategy focuses primarily on well-located assets in major European cities, benefiting from a strong urbanisation trend, or in key regional hubs with exposure to increased connectivity. TIGR incorporates the flexibility to consider more specific sub-markets supported by strong evolving themes as well as medium-sized cities evidencing long-term economic momentum. Demographic shifts, the extension and revitalisation of urban infrastructure, improved connectivity, digitalisation, as well as evolving lifestyle and environmental expectations, are among the themes profoundly impacting on society’s requirements from leased physical space. Our allocation will focus mainly on offices and industrial assets but will be able to invest in residential and related thematic niches. In the near term, modest allocation to the retail segment may be achieved in attractive mixed-use destinations which are well-protected from the changes underway as a result of the increasing impact of online sales.”