Germany’s professional pension funds are facing mounting legal scrutiny over past investment decisions, with both Versorgungswerk der Zahnärztekammer Berlin (VZB) and Bayerische Versorgungskammer (BVK) drawn into proceedings aimed at clarifying accountability.
A Berlin labour court ruled this month that former VZB director Ralf Wohltmann abused his position by holding roles in companies linked to the fund while simultaneously advising its management committee on investment decisions.
VZB is also seeking €82m in damages from auditing firm Baker Tilly over its review of financial statements, which, according to chair Thomas Scheiritz, revealed investments that breached regulatory requirements.
In Bavaria, lawyers are preparing action to compel BVK – which oversees €117bn on behalf of the state’s professional pension funds – to pursue damages related to US real estate investments that could result in losses of up to €830m.
The legal strategy may draw on the case brought by Mubadala, the Abu Dhabi sovereign wealth fund, against the insolvent Austrian property group Signa, which is seen as a potential template for recovery claims.
In Switzerland, the pension fund for employees of the canton of Zurich, also known as BVK, is facing political criticism after distributing CHF384m to members to mark its 100th anniversary. Although the fund is currently in a strong financial position, critics recall its taxpayer-funded rescue and a past corruption scandal involving its former head of asset management.
More broadly, Swiss public pension funds are reporting their highest funding ratios in over two decades.
Some have added gold to their strategic asset allocation for the first time, and others are considering doing so as a hedge against geopolitical and financial risks and as a partial substitute for US Treasuries.
To address concentration risks in global equity markets, several pension funds are turning to equal-weighted indices and increasing allocations to small-cap stocks.
In Austria, pension funds are likewise expanding exposure to small caps, as well as European and emerging market equities, to reduce reliance on the US market.
Items to note:
- The IPE Real Assets Infrastructure & Natural Capital Global Conference & Awards 2026 is taking place on 17 and 18 September in Munich.
Luigi Serenelli
IPE DACH Correspondent
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