Overview
- Bayerische Versorgungskammer reported a 3.4% net return for 2025, matching the prior year, and said parts of the U.S. loss risks affected results.
- The fund invested about €1.6 billion in U.S. real estate, booked roughly €163 million in 2024 write-downs, and previously flagged up to €690 million in potential losses.
- Management says no pension payments will be cut and notes other assets helped offset property losses in the diversified portfolio.
- Two long-serving investment managers were dismissed, an external review is underway, and Munich prosecutors have opened preliminary inquiries.
- Media reports link portions of the deals to investor Michael Shvo as U.S. tenants and buyers prepare lawsuits, including RICO-related claims, and Bavarian opposition parties question oversight that the Interior Ministry defends.