GERMANY – Optics firm Leica Microsystems in Frankfurt has chosen Invesco Retirement to provide a defined contribution pension plan for its 1,300 employees in Germany.

Employer financed contributions will be invested in a ‘life cycle’ style fund developed in the US by Invesco for use with the 401(k) pension plan.

Christof Quiring, head of pension management at Invesco Retirement, said: “With the life cycle concept, we reduce the risk with the increasing age of the plan member. On top of that we manage the risk budget dynamic by managing the equity quota according to our tactical asset allocation model. This reduces the employers shortfall risk, and allows the employer to pass the full upside on to the plan members.”

Quiring said that Invesco won the Leica contract in competition with Commerzbank and Allianz. “As an Anglo-Saxon asset manager trying to enter the German market we have to be innovative to gain clients.”

Invesco Retirement, a subsidiary of global asset manager Amvescap, had 29.5 billion euros in assets under administration at September 30 2002.

Fred van Bree, vice president global human resources at Leica said: “Invesco’s experience as an international managers of pension funds and the innovative investment concept impressed us.”

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