GERMANY – Chemicals and mining industry fund Chemie-Pensionsfonds, achieved a 10.9% return in 2003, which compares with 2002’s 6.8% return.

The result is the average of the returns of the group’s “more risky” investments with fixed income ones, like long-term bonds explained Burkhard Jahn, press officer at the employers-federation of the chemicals sector, BAVC, Bundesarbeitgeberverband Chemie.

The fund, which as well as BAVC also includes the mining, chemistry and energy group IG BCE, IG Bergbau, Chemie, Energie, was set up in 2002 and is currently administered by HypoVereinsbank in Munich.

Jahn said that the pension scheme targets mainly young employees. The scheme has been chosen by 400 employers with a total of 200,000 workers.

“By now employers and employees have started to see the advantages of Chemie Pensionfonds,” said IG BCE board member Werner Bischoff and BAVC’ managing director Hans Paul Frey in a statement.

“Through an intelligent investment policy and synergy effects, administrative expenses among other things could become smaller.”

The fund’s target, BAVC said, was achieving “attractive returns through the highest possible liquidity and steadiness”.

Contributions are paid in two different cover plans, BAVC also explained. The first includes a warranty-capital for the contributions put aside by the employee minus costs of insurance. The second plan is used to set up an “additional, free capital investment”.

“In contrast with other forms of corporate pension schemes, Chemie-pension funds can chose among a wider range of investment alternatives and consequently, this helps optimise returns,” said BAVC.

Bischoff and Frey added: ”The development of Chemie constitutes a good basis for the setting up of an attractive pension scheme.”