For the first time ever, Aberdeen Asset Management Deutschland AG (AAMD) has submitted the sustainability of its property business for testing as part of a property investment process ESG (environmental, social, governmental) rating procedure. Wiesbaden-based TELOS is a ratings agency specialising in asset management. With regard to the implementation and application of sustainability criteria (ESG), it has awarded the property investment process of Aberdeen Asset Management Deutschland AG an overall rating of "AA+ (outlook AAA-)".
This ESG rating, which was performed for the first time, included analysis and evaluation by TELOS of the organisation and business processes at Aberdeen Asset Management Deutschland AG in the areas of fund management, research, transaction management and asset management, treasury, controlling/quality management and team, with special focus on the implementation and application of sustainability criteria. The importance of ethically sustainable investment is growing noticeably, especially among institutional investors. The TELOS experts stress how investors are placing greater importance, not just on return, risk and liquidity, but also increasingly on the values practised by a company with regard to environmental, social and governance aspects, when assessing potential investments.
Aberdeen German Urbanisation Property Fund as one example
TELOS cited the Aberdeen German Urbanisation Property Fund (AGUPF), which AAMD launched in the 1st quarter of 2016, as representative of the implementation and consideration of sustainability criteria in the relevant products. The Fund invests primarily in inner-city housing and up to a maximum of 30% in mixed-utilisation buildings. In geographical terms, it focuses on cities, towns and regions offering growth potential. The Fund was designed as an AIFM under German investment law. Alongside major institutional investors with a long-term investment horizon, such as pension funds or insurance companies, a second class of shares enables a limited amount of investment through selected intermediaries even by smaller professional investors with a long-term interest.
Overall, Aberdeen manages seven special property funds in Germany for institutional investors, together with several property mandates and a closed property investment company, all with a total volume of around four billion euros.
Dr. Hartmut Leser, Chairman of the Board of Management at Aberdeen Asset Management Deutschland AG:
“We are absolutely delighted by this excellent rating and its implicit confirmation of the many years we have spent striving to implement sustainability criteria in both our investment process and our products. Nowadays we see that our early efforts to focus on sustainability issues in our investment processes are paying off – not just in the shape of this rating, but also in the high regard of our clients.”
Tel. +49 (0) 69 768 072 181