Germany sees its first full pensionsfonds transfer
GERMANY - The German industrial services provider MAN Ferrostaal is transferring its pensionsfonds into the Allianz Pensionsfonds AG.
Allianz will take €155m in assets as well as liabilities for the 2,700 members and create a separate investment pool within the Pensionsfonds AG for the MAN Ferrostaal AG.
"Through this solution we have the advantages of a company-specific asset allocation without having to bear the costs and the administrative burden of a Pensionsfonds ourselves," noted Joachim Ludwig, chief executive of MAN Ferrostaal.
Allianz noted it will separately administer the asset management of MAN Ferrostaal's Pensionsfonds and CTA via a fiduciary mandate for which both AllianzGI funds as well as third-party mandates will be used.
Furthermore, MAN Ferrostaal will pay around €50m into the Allianz PortfolioKonzept, which - similar to reinsurance - offers a fixed interest payment of 2.25% per year as well as an annually set variable interest rate, and which was created to decrease downside risks in pensionsfonds.
The MAN group, which had provided pensions for its former subsidiary, has now transferred the pensions after the Abu-Dhabi based International Petroleum Investment Company (IPIC) had bought 70% of the shares of MAN Ferrostaal last year.
"The solution ensures a one-to-one take-on of all pension promises," said Allianz.
This is the first full pensionsfonds transfer into a multi-employer vehicle which was approved by the German financial supervisor Bafin.
An earlier attempt by Babcock-Borsig to transfer all of its pension assets and liabilities had failed because of strict German regulations and eventually saw Mercer take on the fund's administration. (See earlier IPE story: Mercer to take on Babcock-Borsig pensionskasse)
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