GERMANY - Deutsche Bank has set up a pension asset-pooling vehicle in Luxembourg aimed at its employees' pension assets and at other companies' funds.
A spokesperson has confirmed the bank is in the process of assembling up to €6bn (US$9bn) in pension assets of its German employees. The next step will be to migrate the assets of Deutsche Bank's employees in other European countries.
He said it was "difficult to say when we are going to have what volume in the newly created pension vehicle".
The following step will be to attract the pension assets of client companies, the spokesperson added.
Deutsche Bank is partnering with State Street, who will act as administrator on this project.
The spokesperson said: "It will make sense to pull the pension assets of clients originated in Germany, who have an international presence, into the central vehicle we have created in Luxembourg.
"We think this project has a great potential for growth and we are benefiting from the good relationship we have had with State Street for several years."
Services related to cross-country pension pooling have been high on the agenda of multinational corporations during the last few years. Custodians have pointed out that market volatility intensified this tendency since the crisis started (Global Pensions, November 26, 2008).
The HSBC Bank UK Pension Scheme is to invest £250m in renewable energy infrastructure, such as solar plants and wind farms, with Greencoat Capital.
With Brexit talks breaking down late on Sunday night in Brussels over the Irish border, investors may be wondering how to best navigate the next few weeks and months. Our assessment is that a number of UK assets have already priced in a significant chance...
Pension freedoms could generate as much as £1.9bn a year in tax revenue for the next 10 years, according to research by the Pensions Policy Institute (PPI).
The Pension Protection Fund (PPF) has conceded it does not have "all the data we need to calculate" the impact of last month's ruling that some benefits may be unlawful.