Judge's report

SOKA BAU’s approach breaks from the pack and merits recognition as ‘outstanding’ compared to German institutions of similar size. Of particular note is its approach to diversification, which is achieved by allocating 43% of real estate to its indirect portfolio, which is 80% invested outside Europe. This barbell approach sets it apart from institutions of similar size, and helps offset its 57% allocation to Germany. In addition, its thorough risk analysis and reporting is commendable. The indirect portfolio targets mostly thematic and regional investments, and even ventures to frontier markets, further boosting diversification. By 2035, SOKA-BAU aims to reduce its real estate holdings to further diversify its portfolio. Direct real estate portfolio will be reduced because of the liability profile of the fund in addition to reducing its indirect holdings to rejuvenate and re-densify the portfolio to minimise capital expenditure and letting risks.