At the beginning of December 2002 pension provisions amounting to EUR 3.6 billion were invested using what is known as a 'contractual trust arrangement' (CTA) into special securities. This amount will be increased further by an additional planned amount of EUR 400 million following the final calculation of the scope of the obligations as at December 2002.
Dr. Tessen von Heydebreck, Member of the Board of Managing Directors of Deutsche Bank responsible for Human Resources, said, "With the segregation of the pension obligations, our employees in Germany will acquire an additional safeguard for their company pension entitlements in keeping with international standards. In addition, we are making an important contribution to more transparency and the improved comparability of our balance sheet."
Deutsche Asset Management (DeAM) has been commissioned to manage the fund. In order to achieve the preferred earnings/risk ratio, investments were made in an internationally diversified portfolio, currently comprising 80% fixed-interest securities (government and corporate bonds) and 20% equities and other risk assets.
By off-setting the fund assets against pension obligations, the consolidated balance sheet is shortened while simultaneously improving cost and capital structure. As a result, it is easier to compare Deutsche Bank's balance sheet with those of its global competitors.