GERMANY - Allianz Dresdner Asset Management has launched a new product concept, backed up with a survey of the European pension market that predicts it will grow by E510bn by 2010.
The survey focuses on the developments taking place in European State pensions systems and the measures employed by individual States.
An annual average growth of 7.5% is expected in the European pension market with Germany, France and Italy accounting for almost 55% of the E510bn growth.
And as Europe shifts towards defined contribution pension schemes with a limited employee risk, Allianz Dresdner Asset Management has launched company-specific risk management products and tailored pension funds which are specifically designed to deal with the pension crisis.
Germany especially has hardly started the process of asset funding old-age pensions.
According to Brigitte Miksa, head of pensions business at dbi, Allianz Dresdner Asset Management´s institutional arm in Germany: “There is a considerable need for companies to analyse market risks and balance sheet effects of the traditional forms of entitlement to occupational pensions.”
The new product concept includes:
- Pension funds and other instruments with and without capital maintenance guarantees.
- The placement of company pension liabilities into externally held trust solutions thereby removing the pension liabilities from the balance sheet and improving important balance sheet ratios.
-Time-value funds allowing employees to deposit ‘time worked’ into special funds to be used to increase life-long work-time flexibilityLast year, dbi increased its market share to 13.1 %, with an asset management volume of e61.5bn. The composition of managed assets according to asset classes has shifted in parallel to the market as a whole from the equity side (33.6 %) more strongly to the bond side (64.9%) and money market securities (1.5%).
The special focus in 2002 according to company spokesman Johann Goldbrunner was to win over companies to the models of occupational pensions, primarily the companies in the metal, electrical and plastic
Goldbrunner said: The entire subject of private or company organised occupational pensions in Germany is in the initial stage of its development.”
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