The Universal Investment Group will establish a dedicated ManCo for Germany’s largest public pension group, Bayerische Versorgungskammer (BVK). The purpose of the new company, which will operate under the name of UI BVK KVG, is to bundle BVK’s funds with the support of Universal Investment’s team. Over the medium term, UI BVK KVG will hold EUR75bn in assets through umbrella and target funds. BVK will be able to call upon the ManCo for services tailored specifically to its needs, which is typically the case with other very large institutional investors that use dedicated management companies. The ManCo will assist BVK to further develop the strategic asset allocation of its twelve legally independent pension schemes. BVK’s funds will continue to be managed by external asset managers. The setup and staffing of UI BVK KVG are still subject to approval by the German financial supervisory authority, BaFin. Initially, the German institutional securities funds will be transferred to the new company, with the remaining bulk of investments being transferred over the next few years.
