Allianz Leben, the life insurance firm subsidiary of Allianz, has added two fund investment optiona in the form of a defined contribution (DC) plan for support funds Unterstützungskassen, it announced yesterday.
The two new fund investment options are called InvestFlex and Variante InvestFlex Green, the latter exclusively investing in sustainable funds.
Members have the option to select all types of funds within the Allianz TopFonds universe portfolio, the company said. Support funds’ assets for company pensions can be invested in funds as well as in ETFs, it added.
The demand for the KomfortDynamik and InvestFlex options have been increasing in recent years, which now account for almost two thirds of new business, a spokesperson for the company said, explaining why it added InvestFlex to support funds.
Members can opt for 60%, 80% and 90% guarantee on the contributions paid, the same level of guarantee offered to members of other company pension schemes via the InvestFlex Green option, Allianz Leben added.
Choosing the InvestFlex and InvestFlex Green options with guarantee means combining fund investment with Allianz’s security assets to try to fend off capital markets fluctuations.
By expanding its fund investment options to support funds, Allianz Leben offers a full product range to those types of company pension schemes.
Last year, support funds had already expanded its product range for members to include pension commitments with the right to choose between a lump sum or pension installments for the Vorsorgekonzepte Perspektive, IndexSelect and KomfortDynamik options.
With the option Perspektive, contributions flow entirely into Allianz’s security assets, offering an interest rate of 3.8% this year, the spokesperson added.
The IndexSelect option is based on the performance of indices such as the Euro Stoxx 50, while the KomfortDynamik option combines security assets with funds’ assets, the spokesperson added.
Support funds are a form of occupational pension scheme normally open to high earners and people holding high ranking positions in companies, that can benefit from tax-free contributions.
The demand for types of “insurance-free” support funds by large and medium-sized German firms remains “consistently high”, according to the association Bundesverband pauschaldotierte Unterstützungskassen e. V.
Also in large companies the amount of new businesses with support funds in large companies continues to grow, it added.