Under strict adherence to the principles of separation of risk and portfolio management in terms of the structural organisation, the COO division is primarily responsible for risk management and risk controlling for assets and company levels. It also covers the maintenance of associated procedures and systems – commensurate with regulatory requirements. These include, among others, the Kapitalanlagegesetzbuch, KAGB (German Capital Investment Code) and KAMaRisk (Minimum Requirements for Risk Management of management companies).
In addition, the division supports and monitors the adherence to standards of good and responsible corporate governance (e.g. BVI Wohlverhaltensregeln – BVI code of conduct).
Centralised Support for Business Divisions
Alongside portfolio management, risk management is the second core function of a capital management company. To that end, risk management is established independently of portfolio management on an organisational level as well as the market unit acquisition and sale. This is how independence can be guaranteed at any time.
This division has years of experience in the utilisation of integral risk management systems for open-ended real estate funds and has already assisted in the implementation of InvMaRisk in a professional advisory capacity. The risk management system is reviewed and developed on a regular basis to ensure it meets changing requirements. Nowadays, as well as open-ended real estate funds and real estate special funds, the system also includes credit special funds, umbrella funds and private equity funds. The companies within this division are completely integrated in DekaBank‘s risk management and controlling systems.
Risks are managed on a divisional and product level. We have developed comprehensive, fully integrated management and risk reporting which comprises the division and funds level. This enables the strategic and operative risk as well as results and product management to operate within the framework of a single, integral reporting instrument.
Risk management is involved in all decisions affecting the risk profile, for example in the form of institutionalised statements for real estate transactions in terms of a second vote. A significant component of risk management is the calculation of a so-called ‘real estate risk’ on the basis of potential developments from things such as rental contracts, property locations or types of use. The degree of creditworthiness for existing business relationships in this context is regularly monitored.
Governance & Regulatorik
Deka Immobilien Investment GmbH and the WestInvest Gesellschaft für Investmentfonds mbH regard proper corporate governance as the creation and compliance of basic principles and value systems for good management practices. This also includes self-control and a high degree of transparency.
Functional management and monitoring structures, protection of various groups‘ interests (stakeholders), targeted collaboration of company management and supervision, transparency in the organisation as well as in internal and external company communication and appropriate handling of risks are hallmarks of proper corporate governance. This applies to both capital management companies as well as alignment of management decisions that yield a long-term added value to the satisfaction of our partners, in particular, our investors.
Targeted implementation is characterised by diverse individual measures. This includes the composition of the Board of Management with a member who is independent of corporate affiliation, the creation of an ombudsman, functional risk management yet also the guarantee of investor protection through clear separation of functions among jurisdictions. By the same token, investors of our special assets are regularly informed on the basis of one of the highest transparency standards in the open-ended real estate funds regarding the progress of their special assets.
Deka Immobilien actively participates with both capital investment companies with regard to the preparation and further development of basic principles and regulations for open-ended real estate funds as well as real estate assets per se. To this end, we are involved with various institutions, interest groups and organisations, and co-operate with numerous committees and task forces on many current and relevant topics. You can find a selection of these under “Memberships”.
BVI Rules of Conduct
The BVI Rules of Conduct set voluntary standards that go beyond the statutory obligations of fund managers. They take account of their fiduciary role, which places particularly high demands in terms of conduct towards investors.
In addition, the guidelines for responsible investing have been integrated into the current version of the Rules of Conduct. They therefore document the social responsibility of the two management companies, Deka Immobilien Investment GmbH and WestInvest Gesellschaft für Investmentfonds mbH, with respect to environmental and social issues and good corporate governance.
As BVI members, Deka Immobilien Investment GmbH and WestInvest Gesellschaft für Investmentfonds mbH have undertaken to comply with the Rules of Conduct as amended on 1 January 2017. Detailed information is available here (German).