Swiss Life Asset Managers France “Real Estate in Modern Investment Solution"

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Presentation of the Partner

About Swiss Life Asset Managers, Real Estate
Swiss Life Asset Managers is one of the leading1 real estate investor in Europe (€69.2bn of AuM as of end of December 2017. Investments are covering all Europe with local teams in 5 countries: Switzerland (Swiss Life Asset Management Ltd.), Germany (Corpus Sireo), France (Swiss Life REIM France), Luxembourg (Swiss Life Fund Management LUX S.A.) and UK (Mayfair Capital).
https://www.swisslife-am.com/realestate.html

About Swiss Life Asset Managers Real Estate France et de Swiss Life REIM (France)
Swiss Life Asset Managers, Real Estate France, is represented by Swiss Life REIM (France), an AIFM real estate management company founded in 2007 and managing 13.1 billion euros as of end of December 2017. The company is responsible for the investments in France, Belgium, Luxembourg, Portugal, Spain and Italy. The French teams combine real estate, legal and financial skills to offer tailored solutions to institutional and retail investors. Assets are managed in all asset classes (offices, retail, housing, logistics, student homes, healthcare and hotels). Swiss Life REIM (France) is also a pioneer on the French OPPCI market.
www.swisslife-reim.com

Presentation of the Partnership

Objectives

The Swiss Life Asset Managers France “Real Estate in Modern Investment Solutions” research chair will involve three years of academic research to analyse the role of real estate in investment solutions. 

The aim of this research chair is to provide a comprehensive analysis of the role of listed and unlisted real estate investments in institutional portfolios, with a particular emphasis on how dedicated forms of real estate investments can prove to be key ingredients within the performance and hedging components of welfare-improving forms of retirement solutions.

An important part of this research effort will be dedicated to assessing the theoretical, empirical and practical challenges related to factor investing in real estate markets, with the ambition to facilitate the emergence of more efficient approaches to real estate risk premia harvesting.

As part of the research chair, we also expect to examine how dedicated forms of real estate investments can be used as part of goal hedging portfolios within improved retirement solutions, based on their ability to generate

inflation-linked replacement income cash flows.

We shall also analyse how insurance products can be integrated with real estate investments to provide a comprehensive retirement solution for all stages of retirement.

[Press release announcing the creation of the research chair (17/10/18)]

 

Research Outputs:

 

Benefits of Open Architecture and Multi-Management in Real Estate Markets— Evidence from French Nonlisted Investment Trusts

June 2021
Béatrice Guedj, Lionel Martellini, Shahyar Safaee
This publication reviews the risk and return characteristics of Sociétés Civiles de Placement Immobilier (SCPIs), a form of French non-listed real estate funds, to assess whether modern investment management techniques can be applied to this growing universe of investment vehicles. We find that the commercial SCPI market offers a significant amount of dispersion in risk and return, and portfolios of SCPIs exhibit a substantially lower level of volatility than the “average SCPI”. We also find several attributes to have explanatory power with respect to such differences in risk and performance. Both results suggest that value can be added by selection and allocation decisions, which could form the basis of a welfare-enhancing open architecture multi-management approach to investment in SCPIs.

[Press release announcing the publication of the research: 28/06/21]

[Communiqué de presse annonçant la publication de la recherche: 28/06/21]

 

Replication of Real Estate Indices: Evidence From the French Property Investment Market

June 2021
Béatrice Guedj, Lionel Martellini, Shahyar Safaee

Authors find that it is possible to track the EDHEC IEIF Commercial Property (France) index with a satisfactory degree of accuracy (based on mean excess return and tracking error) over long-term horizons by constructing a buy-and-hold and cap-weighted portfolio of 10 to 15 SCPIs, thereby mitigating the liquidity constraints of the French non-listed real estate fund market. Our proposed replication method does not require any modelling or any data-intensive calculation and is therefore expected to be robust. Additionally, the analysis shows that a buy-and-hold and equal-weighted portfolio of 10 to 15 SCPIs can be seen as a reasonable proxy of the MSCI France Annual Property index. They also confirm that French listed real estate companies (SIICs) have the potential to complement SCPIs to further improve the replication of the MSCI France Annual Property index, although the exact portfolio implementation will likely require a model for the smoothing effect embedded in appraised valuations. Their work could naturally be extended by including more specific liquidity constraints and criteria in either the selection or the allocation process. In conclusion, it appears that investors looking for passive exposure to the French commercial real estate asset class, either to enhance the risk-adjusted return of their multi-asset portfolios or to construct a multi-asset retirement goal-hedging portfolio, can potentially gain access to a simple and investable solution.