The time is right for multi-client asset pooling, says AEGON Global Pensions, in its paper considering international pension provision.

Asset pooling comes of age – a roadmap to pooling assets for pensions addresses the issues that multinational companies face in managing their pension plans, the diversity of pensions, and the pensions systems in Europe. The different pension pooling solutions that are presently available to address this diversity are also looked at.

“Asset pooling was developed to help companies with international operations to gain a clear overview of their pension assets and to take advantage of their international scale,” commented Alexander van Ittersum, author of the white paper. “Importantly, asset pooling providers clear benefits for all stakeholders – it reduces complexity for corporate headquarters, provides a high quality asset management solution for local subsidiaries and provides local trustees with good investment performance and increased diversification at a lower cost.”

He added that asset pooling is the first step for companies towards pay-European pensions, future-ready for inclusion into one or more IORPs at a later date. “Our analysis of the different pooling solutions presently available for multinational companies provides some useful guidance both on the benefits of multi-client asset pooling but also on how to implement asset pooling.”

The last few years have seen companies set up tailor-made asset pooling solutions, and AEGON said it had expected asset pooling for pensions to have broken through as a must-have solution for all companies with pensions plans across Europe. However, these solutions were highly complex and costly to implement, and the financial crisis forced companies to focus instead on more urgent problems.

For a copy of the white paper, please click here.

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