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Suez in Luxembourg pension pooling move

LUXEMBOURG – Kredietbank’s Luxembourg arm says it has launched a €1.1bn pension pooling vehicle for the Suez-Tractebel group.

“Kredietbank S.A. Luxembourgeoise is proud to announce the recent launch of the first Luxembourg-based pension pooling vehicle for the Suez-Tractebel group in Brussels,” the firm said in a statement.

It added that a new SICAV called Esperides has been set up with more than €1.1bn in net assets as a pension pooling vehicle for the companies of the Suez international group.

“Only institutions for occupational retirement provision or similar investment vehicles (occupational pension schemes like pension funds etc), created on the initiative of the Suez group for the benefit of its employees, may subscribe to the SICAV which invests the pooled assets on behalf of the complementary pension schemes.”

Esperides has three sub-funds corresponding to three different risk profiles – meaning that different Suez schemes may pursue different asset allocations according to their specific characteristics.

“Each pension scheme is able to build up its portfolio by allocating the exposure it wishes to each of the three sub-funds.”

Esperides is not liable to any Luxembourg subscription tax.

Kredietbank said pooling can achieve cost savings through economies of scale such as lower management fees and administration costs. There were also benefits of better risk diversification and tax efficiency.

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