Munich / Frankfurt am Main, July 25 2019

MEAG infrastructure debt fund collects over € 660 million

MEAG has successfully completed the second closing of the MEAG infrastructure debt fund Sub-Fund 1. A volume of € 500 m was initially aimed for, but after the first closing with over € 200 m at the start of the year, more than € 660 m could be collected. A large majority of the subscribers to the regulated MEAG infrastructure debt fund S.C.S. SICAV-FIS special fund, which invests in leveraged infrastructure, are insurance companies and pension funds. Two-thirds of the investors are from Germany, and one-third from the rest of Europe. The fund was issued using the Luxembourg platform of Universal-Investment and offers broadly diversified investments with an optimised risk/return profile for this asset class. The targeted duration of the issue phase is to be more than ten years. Around half of the amount raised in the first closing has already been invested on the market.

Harald Lechner, managing director at MEAG in charge of institutional customers, says: "We are happy that we were able to attract institutional investors from both Germany and internationally, and use our expertise in the field of infrastructure debt to utilise the potential provided by the Munich Re network. The turnaround in the US interest-rate policy and the outlook that rates will remain low for some time convinced many investors to buy into more attractive returns at acceptable risk."

Sofia Harrschar, Head of Alternative Investments – Real Assets at Universal-Investment adds: "Institutional investors like pension funds and insurance companies have been increasingly diversifying their investments in recent years, so alternative investments are becoming ever more important and popular as a reaction to the protracted low interest rate period. Infrastructure investments made using equity and debt instruments offer a good risk/return ratio in this scenario."

Holger Kerzel, managing director at MEAG responsible for illiquid investments, is convinced: "Our investments represent a broad and deep market with exactly the right products for our ambitious demands. Extensive experience and top expertise in investing in this asset class are essential for us to be able to select the most suitable assets for our investors. Specialists from Hartford Steam Boiler, a Munich Re company, assist with the due diligence for renewables. When it comes to risk analysis we benefit from Munich Re's "Infrastructure Risk Profiler" range of services, which supports holistic risk analysis.“

MEAG practical experience encompasses around 50 projects that it has invested in for Munich Re (Group) in the past, having selected them from several hundred promising projects all told. The earnings and cash flows of these investment projects are planable and well suited to covering calculable payment obligations. So the infrastructure debt fund is ideal for investors subject to the German Insurance Supervision Act (VAG). And what is more, the favourable characteristics of the investment projects is beneficial for treatment under Solvency II.

About MEAG

MEAG manages the assets of Munich Re and ERGO. It has representations in Europe, Asia and North America and also offers its extensive know-how to institutional investors and private clients from outside the company group. MEAG currently manages assets to the value of around € 268 billion.

More at www.meag.com

Keyfacts

Two rounds of financing concluded over plan with more than 660 million euros

The fund will invest in European infrastructure projects in euro

Special fund issued on the Universal-Investment platform

Bernd Obergfell

Head of Communications

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bernd.obergfell@universal-investment.com

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