IPE DACH Briefing: Corporate pension funds review asset allocations

Pension funds in the DACH region are positioning themselves to revise their asset allocations or benefit plans.

Mercedes-Benz is adjusting its pension asset allocation after divesting a stake in Nissan. The stake, no longer considered strategic in the German carmaker’s pension fund pot worth €22.5bn, lost its value as Nissan faces a deep crisis.

German speciality chemical company Evonik is considering extending its defined contribution plan with guarantees to its wider workforce, managed by Allianz Global Investors. It has been received well so far, particularly by young employees.

Lufthansa, instead, is struggling to keep its pilots on board with its DC plan, which, according to the Vereinigung Cockpit, the association representing the pilots, delivers lower returns and lower pension benefits for the employees.

In Switzerland, the pension funds of companies listed on the Swiss blue chip market index (SMI) and the Swiss Leader Index (SLI) are restructuring their bond and equity portfolios while proceeding to boost investments in private markets.

Among the pension funds, the CHF4.3bn scheme of watchmaker Swatch has reduced its fixed income exposure this year to increase allocations to infrastructure, while at the same time assessing its first foray into private equity and private debt.

The boards of Swiss pension funds are discussing whether government bonds can still fulfil their historical functions, with rising public debt and political turmoil in the US and now in France.

In Austria, APK Pensionskasse and its provident fund, APK Vorsorgekasse, have hedged risks on US dollar-denominated assets in the first half of the year, turning to Europe to find investment opportunities, particularly in investment-grade corporate bonds.

Items to note:

• The IPE Conference & Awards 2025 is taking place on 4 December at the Palacio de Congresos de Sevilla in Spain.

Luigi Serenelli

IPE DACH Correspondent