BVV, the €35bn pension provider for Germany’s financial sector, has sacked chief investment officer Axel-Rainer Hoffmann after just five months in the role.
A spokesperson for BVV told IPE that Hoffmann has resigned from the board of directors of Pensionskasse BVV Versicherungsverein des Bankgewerbes, the support fund (Unterstützungskasse) BVV Versorgungskasse des Bankgewerbes, BVV Pensionsfonds, and from the management of BVV Pension Management.
Hoffmann was appointed CIO and member of BVV’s management board in June last year, effective from 1 September, as part of a wider management and governance restructure.
Marco Herrmann was named chair of the board for BVV’s pension vehicles, and chair of the management board of BVV Pension Management, a vehicle set up in 2023 to operate as a full-service second pillar pension provider.
According to Tagesspiegel, Hoffmann learned of his dismissal while on holiday. The spokesperson declined to comment on the cause, citing “personal matters”.
Reports suggest disagreements emerged within the management board over BVV’s investment strategy, which Hoffmann reportedly considered too risk-averse.
BVV invests predominantly in fixed income. Its Pensionkasse targets 65.6% of assets in bonds and 5% in equities, according to its investment policy.
The seven pension plans in BVV Pensionsfonds have bond allocations ranging from 31% in pension plan B to 74% in pension plan D.
Assets in BVV.MAXRENTE Chance, the pure defined contribution plan underpinned by a social partner agreement and a more aggressive strategy, are 44% in bonds, 14% in equities, 17% in alternatives, and 25% in mixed funds.
Hoffmann’s appointment came as BVV sought to expand its DC offerings to employers outside the financial sector.
It is unclear whether his departure will alter the fund’s strategy.
BVV closed 2024 with a net return of 3%, maintaining a similar level over the past decade.
“BVV is a disgrace to the financial sector,” a source told Tagesspiegel, adding that all pension funds have struggled to generate high returns during a prolonged period of low interest rates, which only ended in 2022.
