Germany’s occupational pension association, Aba, is calling on the government to allow real estate Spezialfonds – vehicles open only to institutional investors – to count renewable energy investments as part of their share of permissible allocations.
The move is intended to enable Pensionskassen, vehicles that provide occupational pensions in Germany, to increase their investment in renewables.
Aba, which is proposing to review the capital investment code (Kapitalanlagegesetzbuch) and the investment ordinance (Anlageverordnung) for Pensionskassen, argues that “suitable investments” in infrastructure should be brought into the real estate quota of special alternative investment funds.
Earlier this year, the German government proposed legislation to allow open-ended real estate funds for retail investors to invest up to 15% in infrastructure assets that generate, convert, transport or store electricity and gas or heat from renewable energy, as part of efforts to encourage more investment in the sector.
Aba said it expected that these new rules, if approved, would lead real estate Spezialfonds to “not waive this investment option” either.
But the association has released a statement also asking for a review of the investment ordinance to allow real estate funds to invest in infrastructure projects in the future, and to list those investments under the real estate share of permissible allocations.
The German government has proposed setting up a separate quota of up to 5% of the security assets of Pensionskassen for direct and indirect investments to finance infrastructure projects.
According to Aba, the government should also clarify whether infrastructure companies, and not only projects, fall under the quota.
In international infrastructure funds, both infrastructure projects in the narrower sense and infrastructure companies are usually admitted as suitable investments, and a clear separation between the two types of investments is often not possible in practice, it said.
Aba had also asked for a 7.5% separate quota – instead of 5% – for infrastructure investments of Pensionskassen.
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