BarmeniaGothaer Asset Management, the asset management firm created by German insurers Gothaer and Barmenia earlier this month, plans to remove external asset managers from its approximately €7.25bn corporate bonds portfolio, on a path to cut exposure to alternatives while bumping up allocations to securities with rising interest rates.
The new asset manager now runs assets amounting to approximately €50bn, and at the same time, the number of its employees has increased significantly.
“This gives us the ability to manage a broader range of asset classes. In particular, with the new team we will be able to manage certain types of investments such as corporate bonds in the future without third-party managers,” Christof Kessler, co-chief executive officer of BarmeniaGothaer Asset Management, responsible for investment decisions, told IPE.
The firm will invest around 14% of total assets in corporate bonds, while around 30% will be invested in government and “government-related” bonds; some €3bn will be invested in renewable energy.
In the past, Goather Asset Management, the asset management arm of insurer Gothaer, expanded its investment portfolio to include natural capital, mainly forestry and agriculture, and venture capital, among alternative asset classes.
Impact and thematic investments by Gothaer Asset Management increased by €200m per year.
“We will not expand the portfolio in alternative investments, but we’ll rather let it shrink in favour of securities,” Kessler said, adding that this new course was triggered by rising interest rates rather than the merger between the two insurers.
Gothaer and Barmenia historically had high allocations to German real estate and infrastructure sectors.
“Even before the merger, both companies were keen to diversify abroad. We will continue to pursue this goal after the merger. We only use third-party managers for this purpose,” Kessler said.
However, he added that BarmeniaGothaer Asset Management is not planning to directly invest in companies and real estate.
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