Germany’s cabinet today approved proposals that would give new corporate pension funds the freedom to make their own investment choices, according to a senior adviser to German Finance Minister Hans Eichel. The new proposals place few limits on how the pension funds, which will be launched in January, will invest their assets, said the adviser, who asked not to be identified. The funds will be restricted to no more than 30% of total assets in non-euro denominated stocks and no more than 10% of assets in a single stock; but money managers had expected quantitative limits similar to those for other pension vehicles.
The adviser said the proposals would be discussed by the Bundesrat, the upper house of the German parliament, Dec. 20.