GLOBAL - IBM has confirmed to Global Pensions that it has established a Common Contractual Fund (CCF) asset pooling vehicle in Dublin Ireland.
The fund, named the “IBM Diversified Global Equity Fund”, is designed to pool together the assets of the company’s pensions schemes across Europe and to enhance net investment return.
Confirming recent speculation, a spokes man for IBM said: “The recently-established IBM Diversified Global Equity Fund is a Common Contractual Fund that offers improved asset management efficiency and enhanced levels of fund management expertise.”
The spokesman also confirmed the CCF was set up last year and the custodian was Northern Trust.
The custodian is already looking after Unilever’s “Univest” asset pooling vehicle (Fonds Commun de Placement or FCP) in Luxembourg and helping Nestle set up their own CCF in Dublin. However Northern Trust was unavailable to confirm or deny its relationship with IBM.
The vehicle was established in around September of last year making IBM the first multinational company to use the vehicle. Unilever announced its vehicle in December 2005.
Gerry O’ Carroll, senior partner at Watson Wyatt, said: ““It has been on IBM’s agenda for about 10 years. They have always prompted the question why can’t they co-ordinate schemes. It is also important to note that IBM has a very strong presence in Ireland.
“With respect to the CCF, if you looking to one aspect of pan-European pensions where Ireland can clearly hit the ground running its clearly on the investment side.
“If you are going to amalgamate pension funds from around Europe and potentially further, the CCF is the ideal vehicle because it can accommodate European pension funds but it can be extended - it’s not dependent on the European initiative in order to justify its advantages to go further,” O’Carroll concluded.
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