Hesse, Baden-Württemberg and the German federal government are setting up a corporate bond fund to invest pension reserves through an index-based strategy.
German federal states of Baden-Württemberg and Hessen, and the Federal Ministry of the Interior have appointed a consortium led by DWS to establish and manage a new index-based investment fund for their pension reserves. The fund is expected to have a target size of €3billion (US$3.4 billion) to €6billion The alternative investment fund (AIF) will invest in euro-denominated corporate bonds and follow a climate-focused investment approach based on the Euro