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The German pension fund has diversified from its traditional strategy of directly owning German property to invest indirectly across Europe through a number of spezialfonds
The North Rhine Doctors' Pension Scheme (Nordrheinische Ärtzeversorgung, or NAEV) has traditionally owned a big portfolio of directly-held German assets but is now trying to diversify its property portfolio. NAEV targets a 50% allocation to Germany in its portfolio, but as managing director Hermann Aukamp explains: "We will now invest substantially abroad and not in Germany."
To diversify its asset base, the doctors' pension scheme invests in spezialfonds created and run by international fund managers. It made its first investment outside Germany in 2000, when it awarded Oppenheim Asset Management a euro250m mandate, expecting returns of between 5% and 5.8%.
In February last year, Warburg-Henderson KAG, a joint venture between Henderson Global Investors and MM Warburg & Co, launched the euro300m Pan-Europa Fonds Nr.a on behalf of NAEV, which contributed euro150m in equity to invest in office, retail and logistics properties. In July last year, German fund manager iii and Invesco Real Estate jointly launched a euro300m spezialfonds on behalf of NAEV. A similar amount has been invested in a spezialfond run by MEAG.
Quicker than direct investment
NAEV defines the spezialfonds' investment policy and decides...