German bank Berenberg and German pension solutions provider Lurse Deutsche Pensions Treuhand GmbH announced Wednesday that the firms secured their first mandate under a newly created, joint outsourced CIO business.
The companies identified the client as a German company with a contractual trust arrangement pension with hundreds of millions of euros in assets; Investment and Pensions Europe reported it is the German Institute for Standardization, a nonprofit organization that develops standards across multiple industries.
Under the OCIO agreement, Berenberg will assume responsibility for the investment management of the pension, while Lurse will assume full administration of the contractual trust arrangement—whereby pension liabilities are secured for beneficiaries while kept off of a company’s balance sheet. Lurse’s administration of the plan will include overseeing the trust structure, reporting and operational management.
“We are delighted that just a few months after the start of our partnership, a German corporate has chosen our joint OCIO offering for its pension plan,” said Michael Kreibich, head of institutional clients at Berenberg, in a translated statement. The mandate “also demonstrates that institutional investors are increasingly relying on external OCIO models for occupational pensions—especially when, as in this case, an efficient, legally compliant, and professionally managed CTA structure is required.”
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In November 2024, the 435-year-old bank partnered with Lurse to offer specialized OCIO solutions for occupational pensions, a pension system in Germany in which both the employee and employer make contributions. The occupational pension is one of three pillars of retirement income in Germany, along with the state pension and a private pension akin to an individual retirement savings plan.
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Tags: OCIO, Outsourced CIO
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