German occupational pension providers are expanding capabilities in areas they previously left to partners, positioning for further growth in the defined contribution (DC) market.
Metzler Pension Management has partnered with insurer Signal Iduna to draw on its actuarial expertise for its Mittelstands and Sozialpartner Pensionsfonds. Metzler expects membership in the Sozialpartner Pensionsfonds – which has yet to begin paying out pensions – to reach 10,000–30,000 by the end of next year.
The pension management unit continues to rely on strong collective bargaining partners such as the union Ver.di to secure the agreements required to offer these plans nationwide.
Signal Iduna may also provide actuarial services in future to Metzler’s largest pension fund, the €7bn Metzler Pensionsfonds, according to the latest figures from BaFin.
Separately, BVV, the pension provider for the financial sector, has signed a strategic partnership with Berenberg. BVV will use Berenberg’s technology and analytics platforms to assess clients’ asset allocations and liability structures, and to support consulting on strategy and risk management.
The partnership underlines BVV’s efforts to reposition itself while expanding its social partner model, which offers DC plans to lenders in the cooperative PSD banking group and potentially beyond the financial sector.
German corporates are, meanwhile, looking at European Long-Term Investment Funds (ELTIFs) to introduce illiquid assets into DC plans. ELTIFs and exchange-traded funds (ETFs) are expected to gain ground in deferred compensation schemes as employees seek transparent, low-cost products with return potential, according to David Erichlandwehr, head of corporate clients team for Germany, Austria and Eastern Europe at BlackRock.
In Switzerland, pension funds are increasing allocations to domestic private equity via Swisscanto’s Schweizer Wachstumsfonds II, despite continued scepticism on private markets.
Veska Pensionskasse, the fund for health sector employees, has excluded private debt from its strategy, citing lower risk-weighted net returns. PK SBB, the pension fund for the Swiss federal railways, is also avoiding the asset class.
In contrast, Austrian pension funds are stepping up allocations to private equity, viewing it as suitable for impact strategies and broader portfolio diversification.
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
This news briefing was published earlier in the week. If you would like to receive it regularly, on your IPE profile, go to My Newsletters and select any from the list.
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