Fitch Ratings has affirmed SEB Asset Management's Asset Manager "M2" rating for its real estate fund business. According to the rating agency, the rating reflects the company's strong market position in Germany, its more than 20 years of track record managing direct real estate investments and the quality of its property selection process.
Fitch also cites the good real estate portfolio the result of a continuous focus on prime-quality properties in the best locations worldwide. The company's consistently stable personnel structure was another positive factor, with key areas such as Legal & Tax even being expanded. The completed outsourcing of property management in Germany was also welcomed.
Fitch's "M2" rating is based on five category scores. SEB Asset Management improved in two categories:
- Company & Staffing: 2.25
- Risk Management & Controls: 2.25
- Investment Selection: 2.0 (after 2.25 in the previous year)
- Portfolio Management: 2.25
- Investment Administration: 2.25 (after 2.5 in the previous year)
The rating scale ranges from 1 to 5, with 1 being the highest possible score. Companies that receive an "M2" rating have a low vulnerability to operational and investment management failure.
SEB Investment GmbH, SEB Asset Management Deutschland's investment company, managed three open-ended real estate funds as at 31 October 2009: its flagship SEB ImmoInvest fund, which has a volume of approximately 6.2 billion, SEB ImmoPortfolio Target Return Fund (766 million) and SEB Global Property Fund (310 million). Its product portfolio is rounded off by real estate special funds such as SEB Asian Property Fund (335 million).