ABB Finds Benefits in Outsourcing

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ABB Vorsorge, the Swiss-based pension fund manager, is getting closer to its goal of managing cost-free and, ultimately, contribution-free pension schemes for its sponsor.

Chief executive Christoph Schenk says: "We have reduced the cost of managing ABB's scheme by 20% since 1998, when we set up a structure to run pension funds for other Swiss companies for fees.

"Our three-year performance, on a risk-adjusted basis, is now number one in Switzerland, and we hope to win more mandates in due course."

ABB is the European electrical engineering company more traditionally known as Asea Brown Boveri. Its Swiss pension fund, called ABB Anlagestiftung, currently represents …