AFIAA launches new investment groups
The AFIAA Investment Foundation is launching two new investment groups. In the future, Swiss pension funds will be able to invest in currency-hedged international real estate through the investment foundation.
AFIAA has added one additional currency hedged investment group to each of its two existing investment groups, which are hedged against the Swiss franc. The AFIAA Global hedged investment group was launched as of June 30, 2018, and enables direct real estate investments. The second currency-hedged investment group AFIAA Diversified indirect hedged is expected to be launched as of September 28, 2018, according to the investment foundation, it will enable indirect investments.
"Since the franc shock at the beginning of 2015, the topic of currency hedging has been a particularly high priority for Swiss pension funds," says Ingo Bofinger, Managing Director of the AFIAA Investment Foundation. Clients would demand currency-hedged investments in foreign real estate on a broad scale. The new investment groups are intended to offer a cost-effective solution for this.
Clients who invest in the new investment groups will not pay additional fund-of-funds structure fees, according to AFIAA. All investment groups are open for capital commitments, it said. The investment foundation manages real estate assets of around CHF 2.2 billion through its investment groups (as of March 31, 2018).
