German chemical company Degussa has re-organised its E2.4bn Pensionskasse, appointing a master KAG structure and a new custodian as well as putting six new investment mandates out to tender.
Andreas Poestges, head of asset management at the Degussa Pensionskasse explained that dbi of the Allianz Dresdner Asset Management group (ADAM) had been appointed as the master KAG provider, while BNP Paribas was selected to provide custodial services to the new structure.
“Appointing a master KAG will allow us to react more closely to market conditions, and meet the requirements of BAFin,” said Poestges, referring to the Federal Financial Supervisory Authority, Bundesanstalt fuer Finanzdienstleistungsaufsicht.
“The Master-Fonds simplifies
the settings of the entire strategy of the Pensionskasse Degussa. Strategies can also be integrated based on tactical asset decisions. Pensionskasse Degussa can therefore obtain exposure to different markets and easily oversee and control all investments.”
BNP Paribas Securities Services was chosen for the quality of its control process and performance and risk measurement capabilities. The custodian will provide performance measurement analysis on a daily basis allowing Degussa to meet its requirements of being able to react more quickly to market conditions.
BNP Paribas Securities Services has won seven custody mandates since late last year totalling E12bn in assets under administration from a variety of sectors.
Dietmar Roessler, sales manager at BNP Paribas’ Securities Services in Frankfurt said that pension funds were the cornerstone of BNP’s European strategy.
Currently the Degussa fund is managed by five managers. Poestges said the fund would now be split into six specialised segments. Mandates have been tendered for: three active equity portfolios in growth, value, and small/mid cap stocks; one passive equity portfolio; one active corporate bond portfolio; and one passive corporate bond portfolio. Degussa’s present pension fund managers can apply.