GERMANY – German chemical company Degussa has re-organised its 2.4 billion-euro pension fund resulting in six mandates being put out to tender.
Andreas Poestges, head of asset management at the Degussa's Pensionskasse explained that dbi of the ADAM group had been appointed as Master KAG.
"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."
Currently the fund is managed with five managers including Universal, Cominvest and dbi. Poestges said the fund will 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. The tender process closes in two weeks. Degussa's present pension fund managers can apply.
BNP Paribas Securities Services has also been appointed as global custodian, chosen for the quality of its control process and performance and risk measurement capabilities. Performance measurement analysis will be provided 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 mandates since late last year totalling 12 billion euros in assets under administration form 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.