Lufthansa AG, Cologne, Germany, is searching for global managers for U.S. and Asian equities and emerging market bonds for a new pension fund being launched next quarter, probably in July, said Axel Tillmann, general manager treasury for the company, which has 4.3 billion euros ($5.1 billion) in pension assets. The fund, which will probably be called LH Pension Fund, will start off with 500 million euros, funded from cash flow. Further details about the searches were not available.
Lufthansa has hired money managers for the other three asset classes in which the fund will invest: government and mortgage bonds, euro equities and corporate euro bonds. Mr. Tillmann declined to identify the managers.
The fund will be managed by multimanager HSBC Trinkaus & Burkhardt. Lufthansa is launching the new plan to fund the next 10 to 15 years of pension liabilities and gradually transfer them off the balance sheet, and to provide better protection for employees, said Mr. Tillmann.
HSBC Trinkaus & Burkhardt and recently hired global custodian State Street Corp. are assisting.