GERMANY - The German federal bank, the Bundesbank, has confirmed it has signed yet another deal for the asset management of one of the newly established Pensionsfonds for civil servants.
The German state of Baden-Württemberg yesterday signed the contract for the Bundesbank to take on the asset management of its Pensionsfonds for civil servants, established last year, for the period of one year.
The state of Mecklenburg-Vorpommern earlier signed a contract with the federal bank to take over Pensionsfonds assets.
A spokesman of the bank told IPE today in the past 18 months a number of regions have tapped the Bundesbank for its asset management services, though declined to reveal the current assets under management for the institutions.
IPE understands the fact that the federal bank is obliged by law to offer the asset management service to public Pensionsfonds for free is often a deciding factor.
Details of the funds' asset allocation have not been revealed but in the earlier case of Bavaria the federal bank agreed not to invest no more than 20% in equities at any time.
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