Key Takeaways
- • DWS has won a mandate to manage a new special fund holding German public pension reserves for the states of Hesse and Baden-Württemberg, with a volume of €3 billion to €6 billion.
- • The fund is an index-based alternative investment fund (AIF) investing in euro-denominated corporate bonds that meet strict EU climate standards, with the aim of covering future pension obligations.
- • Investors include the Baden-Württemberg pension fund, the Alterssparbuch Hessen, and the federal government's special fund, with the Bundesbank acquiring units for the federal share.
- • The mandate reinforces DWS's position in institutional sustainable asset management as German public pension money is increasingly steered toward EU climate-aligned investments.
Summary
DWS has won the mandate to manage a new special fund holding pension reserves for the German states of Hesse and Baden-Württemberg, according to Dealroom. The vehicle carries a volume of between €3 billion and €6 billion, and is structured as an index-based alternative investment fund (AIF) that invests in euro corporate bonds meeting strict EU climate standards. The fund's stated purpose is to cover future pension obligations.
The investor base includes the pension fund of Baden-Türttemberg, the Alterssparbuch Hessen, and the federal government's special fund. For the federal share, the Bundesbank will acquire fund units for its portfolios. The Alterssparbuch Hessen, established as a special fund in 1999, invests across fixed-income securities, corporate bonds and green bonds, among other instruments.
The mandate comes as DWS deepens its institutional client work. The firm has named Florian Fritsche head of institutional sales in Germany and has brought on DekaBank and STOXX Ltd. as partners. Separately, DWS has been cited in coverage of Germany's pension reform, which publications have described as opening a private pension market expected to roughly double to about €500 billion over the coming decade, with S&P Global Ratings estimating €26 billion to €56 billion in additional annual inflows into German private pensions.
Dealroom characterizes the mandate as evidence that public pension money in Germany is increasingly directed toward EU climate-aligned investments, consolidating DWS's role in sustainable asset management.
The investor base includes the pension fund of Baden-Türttemberg, the Alterssparbuch Hessen, and the federal government's special fund. For the federal share, the Bundesbank will acquire fund units for its portfolios. The Alterssparbuch Hessen, established as a special fund in 1999, invests across fixed-income securities, corporate bonds and green bonds, among other instruments.
The mandate comes as DWS deepens its institutional client work. The firm has named Florian Fritsche head of institutional sales in Germany and has brought on DekaBank and STOXX Ltd. as partners. Separately, DWS has been cited in coverage of Germany's pension reform, which publications have described as opening a private pension market expected to roughly double to about €500 billion over the coming decade, with S&P Global Ratings estimating €26 billion to €56 billion in additional annual inflows into German private pensions.
Dealroom characterizes the mandate as evidence that public pension money in Germany is increasingly directed toward EU climate-aligned investments, consolidating DWS's role in sustainable asset management.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.