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CSA 2 Multi-Manager Real Estate Global: CHF 1 bn in capital commitments

April 4, 2019

CSA 2 Multi-Manager Real Estate Global has surpassed one billion Swiss francs in commitments. This success was attained in a mere two and a half years from inception, in a highly complex field already populated by a number of competitors. The portfolio management team are convinced that the solution will continue to meet the needs of investors in the coming months and years.

CSA 2 Multi-Manager Real Estate Global is an investment group of the Credit Suisse Investment Foundation Pillar 2, which is tailored specifically to Swiss pension funds. The investment group provides access to foreign real estate, which is an asset class that is still severely underweight among many institutional investors. It is a Multi-Manager product that invests in select unlisted real estate funds abroad, pursuing a core+ investment strategy. With the focus on investments in core funds, the portfolio of the investment group benefits from targeted supplements in higher-yielding funds that pursue a value-added or opportunistic investment strategy. Thanks to a very broad diversification by sectors (residential, logistics, offices, retail, other), regions (US, Europe, Asia/Pacific), fund managers, and underlying real estate (currently over 3,000), the portfolio risk is not significantly higher than that of a pure core investment. Foreign currency risks vis-à-vis the Swiss franc are largely hedged against.

As a result of this success, another global multi-manager real estate fund is planned to be offered soon. It will be aimed at institutional and qualified private investors and will be domiciled in Luxembourg.

Risk

  • Moderate liquidity compared to listed investment products
  • Real estate fund values may fluctuate (for instance, because of changes in economic circumstances, interest rate developments, or unfavorable local market conditions)
  • Risks associated with the purchase, financing, ownership, operation, and sale of real estate
  • Legal and tax risks associated with investments in real estate funds

 

 

The key risks of real estate investments include limited liquidity in the real estate market, changing mortgage interest rates, subjective valuation of real estate, inherent risks with respect to the construction of buildings and environmental risks (e.g. land contamination). The issuer and manager of CSA 2 products is the Credit Suisse Investment Foundation, Pillar 2, Zurich. The custodian bank is Credit Suisse AG, Zurich. The articles of incorporation, the regulations and the investment guidelines as well as the latest annual reports and fact sheets can be obtained free of charge from the Credit Suisse Investment Foundation, Pillar 2. This foundation is open only to a restricted group of tax-exempt pension funds domiciled in Switzerland (article 3 of the articles of incorporation).

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