Metzler targets SMEs with new pensions vehicle

Metzler Pension Management has expanded its offering with the launch of a new pensions vehicle aimed at small and medium-sized enterprises (SMEs), following the acquisition of the Pensionsfonds operated by Nürnberger Lebensversicherung.

The fund, renamed Metzler Mittelstands Pensionsfonds, is the third vehicle under the Metzler umbrella, alongside the Metzler Pensionfonds, which caters to larger firms, and the Sozialpartner Pensionfonds, which offers plans under collective bargaining agreements.

“Now we have three Pensionsfonds: the Metzler Pensionfonds focusing on larger companies; the Sozialpartner Pensionfonds that generates new occupational pension contracts through collective [bargaining] agreements; and finally, the Metzler Mittelstands Pensionsfonds focusing on smaller and medium-sized companies,” Christian Remke, chair of the board of directors at Metzler Pension Management, told IPE.

The Mittelstands Pensionsfonds will initially manage €315m in assets transferred from Nürnberger, covering 3,569 pension arrangements across around 700 corporate clients.

The new fund will support SMEs in both taking over existing pension liabilities and establishing new occupational pension commitments.

Two models

Asset management will follow two distinct models using mutual funds (Publikumsfonds) – a risk-based approach with four predefined profiles, and SMART, a return-based model geared towards achieving target returns, Remke explained.

The Mittelstands Pensionsfonds is at the heart of Metzler’s growth strategy, with ambitions to significantly scale assets under management over the coming years, he added.

“We want to double or triple net inflows per year over a period of five years,” Remke said.

To achieve this target, Metzler is deepening relationships with existing partners such as Nürnberger and bringing in new collaborators with expertise in occupational pensions. These include consultants, auditors, and law firms.

Remke said the firm is working closely with Aon, partnering in the new Metzler Mittelstands Pensionsfonds.

“We will expand the partners’ platform, including auditors, law firms, and consultancies,” he said, adding that Aon works with a range of SME clients seeking pension solutions.

No guarantees

Pension providers and consultants are increasingly turning their attention to Germany’s SME sector, where the uptake of occupational pensions remains relatively low, despite skilled labour shortages and political efforts to strengthen the second pillar.

Many family-run firms have historically shied away from such arrangements, concerned about the liabilities associated with guaranteed benefits.

To address these concerns, Metzler’s new fund will offer plans without guarantees.

“The market for Pensionfonds is still growing. Pensionfonds is the most flexible vehicle, not considering direct promises (Direktzusage), to best implement the demands of employers and employees,” said Remke.

The move follows similar developments by other providers. Allianz Global Investors, for example, recently launched the Allianz Plug-In Pension to streamline pension administration for SMEs.

German policymakers are currently weighing the introduction of automatic enrolment to boost occupational pensions, if voluntary participation does not increase under existing legislation.

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