Dresdner Bank has invested 2.8 billion deutsche marks (U.S. $1.9 billion) of its own pension reserves into Spezialfonds, or tax-favored commingled funds, said Hans-Dieter Bauernfeind, head of investment management for the bank's institutional asset management division.
The move is in anticipation of Germany eventually moving toward funded pension plans and away from the book reserve system.
Dresdner manages the assets internally.
