GERMANY - Financial arm of electronics giant Siemens - Siemens Financial Services (SFS) - is to offer pensions consulting to other corporate schemes.
SFS’s pensions advisory department aims to use asset and liability modelling to help companies choose their investments strategies, including equity funds or fixed-interest-bearing investments.
We advise companies to set up pension schemes for their employees that are geared to the capital markets and recommend for this purpose the profitable pension trusts, which after their start-up financing pay for themselves, said SFS’ Munich pension advisory head, Wolfgang Lotze.
The consultation process is divided into four phases:
1. Defining the company’s principles, aims, decision- making processes, and control mechanisms for the pension scheme and incorporating them into guidelines.
2. Development of investment strategy, or asset allocation using a computerised tool for asset and liability modelling.
3. Selection of asset managers, wording the provisions of the contracts, and defining the management processes.
4. Focus on risk-controlling and reporting.
The moves anticipates German pension reforms which stress the role of company plans.
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