EUROPE - Nestle has confirmed to Globalpensions.com that it is in the "process of setting up" an asset pooling vehicle, the Common Contractual Fund (CCF), in Dublin, Ireland.
The vehicle, primarily geared for multinationals with over 1bn in scheme assets, is designed to pool together pension schemes dotted across the globe and enhance the net return from the assets while limiting the associated risks involved.
Nestle who have approximately 8.3bn CHF (e5.3bn) in assets decided to opt for the Irish CCF, rather than the Luxembourg equivalent the Fonds Commun de Placement (FCP), because it already has approximately 12 pooled vehicles set up in Dublin.
The corporate Pension Director for Nestle, Jean-Pierre Steiner, claimed they were in the final stages of getting the vehicle on the tracks.
He said Nestle needed to “clean up a few details with our custodian” who he later confirmed to be Northern Trust.
However Steiner could not place a date on when the vehicle would be ready and added that it was not yet in the hands of the Irish Financial Regulator.
“It is difficult to say for sure with the regulator how long it can take. Of course it will be as soon as possible but I cant make any prediction about that. You need the approval of the regulator,” he said.
The news comes shortly after Unilever created their own asset pooling vehicle, Univest in December. Unilever opted for the Luxenburg based FCP.
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