Judge's report

Cassa Nazionale del Notariato (CNN) has demonstrated a solid and strategic asset management approach, achieving significant portfolio growth despite a challenging global environment. Its prudent diversification, focused on sustainable real estate investments, and commitment to ESG principles reflect a forward-thinking and resilient investment strategy.

The management of CNN’s real estate portfolio has been outsourced to two external managers, committed to ethical principles, legality, respect for human rights, ESG regulations, and architectural quality.

CNN’s ambition in recent decades has been to transform its real estate portfolio by converting an unprofitable real estate portfolio into trophy assets that guarantee an increasing return. It has a clear strategic focus on the home market.

KBC Pensionfonds is commendable pioneer in exploring unlisted real estate and infrastructure and demonstrates a solid investment strategy, focusing on stability and long-term growth to weather market challenges. In addition, KBC has a disciplined selection process in place, based on both qualitative and quantitative inputs.

KBC Pensioenfonds is taking advantage of secular trends such as decarbonisation, digitalisation, demographic changes and urbanisation. The fund aims to limit the currency risk by investing mainly in the Economic and Monetary Union or by investing in euro-hedged share classes. It also looks at alternative safe assets, such as ground rents and 20–30-year leases with strong tenants in the healthcare sector.

KBC has a 50/50 split between direct property in Belgium and a core-satellite approach elsewhere in Europe. Some more risky investments that involve development start as a private equity investment evolving over time to becoming part of the core real assets portfolio.

In an unusual move, considering the headwinds in the sector in general, KBC invested in retail building on a prime location in Hasselt, Belgium, exemplifying its strong deal-sourcing capabilities in its home market.