Germany´s largest pension fund Bayerische Versorgungskammer (BVK), with assets under management worth €107.3bn, is transferring its medium-term assets worth €75bn into a new management company set up by Universal Investment.
The new asset management company, called UI BVK KVG, will pool a total of €150bn through funds of funds and target funds invested by fund of funds.
Assets will grow by 50% in the next few years, it was announced, through the reallocation of direct holdings in portfolio to funds for alternative investments, while Spezialfonds for securities will be transferred to the new asset management company.
BVK plans to transfer the largest part of the assets to the new management company in the next few years, it said.
UI BVK KVG was set up to support and further develop the strategic asset allocation of BVK and its 12 pension schemes, the pension fund said in a statement.
External asset managers will continue to manage BVK’s funds. The new asset management company will take over the services for BVK, going beyond the classic master KVG business, it said.
Stefan Rockel, managing director of Universal Investment, and Mathias Wilhelm, executive director and member of the management board, will take over the management at the UI BVK KVG.
The supervisory board of new asset management company will include André Heimrich, member of the executive board responsible for asset management at BVK, Katja Müller and Michael Reinhard as chief customer officer and chief executive officer, respectively, from the Universal Investment side.
Michael Reinhard, CEO of Universal Investment, said: “With UI BVK KVG, we are lifting our long-standing partnership with the Bayerische Versorgungskammer to a new level. We are pleased that BVK continues to place their trust in us and builds on our highly specialised know-how.”
Daniel Just, BVK’s CEO, added: “In the future, our assets will be managed by a specialised entity of our partner Universal Investment. Our plan is to keep growing together.”
The new asset management company extends BVK’s partnership with Universal Investment which has stretched over a 20-year period, with the latter managing assets through a master fund or alternative investments in a master KVG, separating out administration and asset management operations provided by external asset managers.
The UI BVK KVG is still subject to approval by the financial supervision authority BaFin.