Italy’s Casse di Previdenza are taking a harder look at macro risks and revisiting allocations across liquid and illiquid assets, with many pension funds leaning further into domestic markets even as conditions remain uncertain.
Private markets will play a growing role at Enpab, the €1bn pension fund for biologists, given the current market backdrop and weak return prospects in listed markets, chief investment officer Danilo Pone told IPE.
Enpab’s exposure to private equity, private debt, infrastructure and real estate is under review as macro, regulatory and geopolitical conditions evolve.
“Our investment strategy takes these dynamics into account through an evolving process of analysis and manager selection, based on both qualitative and quantitative criteria,” Pone said.
The fund is running simulations for its new strategic asset allocation alongside SDA Bocconi School of Management, with the aim of redefining its private markets target, currently 10%.
Heightened geopolitical and economic uncertainties are also shaping the 2026 asset allocation of Inarcassa, the €17.2bn pension fund for engineers and architects.
The fund will reduce equities and real estate next year, build up fixed income and maintain a “selective approach” to illiquids, it said.
Fixed income will rise to 39.5% of assets in 2026, up from 33.5% this year. Equities will fall from 26% to 22.5%, and private markets from 21% to 19.5%, the fund has confirmed to IPE.
The review reflects a “prudent yet active” stance in light of volatile rates, uncertain macro data and pressure on traditional growth models, it added.
Domestic tilt intensifies
Private markets remain a favoured alternative where traditional assets have disappointed on risk-adjusted returns.
Cassa Dottori Commercialisti (CDC), the €12.5bn scheme for chartered accountants, plans to lift alternatives to 25% of assets, up from 20% last year, chief investment officer Fabio Lenti said.
By 2026, CDC intends to deploy €940m across public and private markets, with 67% in bonds, 16% in equities and 17% in alternatives – alongside a meaningful domestic allocation.
The journalists’ pension fund, INPGI, has begun selecting managers to invest €90m in private equity and private debt evergreen funds abroad, as well as in Italian private equity.
Across Italy’s white-collar schemes, private market allocations tend to come with a strong domestic bias.
“Infrastructure, primarily domestic, has recently attracted significant capital,” said Giambattista Chiarelli, head of institutional at Pictet Asset Management.
Private debt remains in demand, and private equity continues to attract interest, although slow distributions are holding back new commitments. Venture capital, Chiarelli added, is still seen as too risky, with limited opportunities in Italy.
But he warned that concentrating too heavily on domestic assets risks “doubling country risk to unacceptable levels”, noting that Italy lacks the diversification opportunities available in markets such as the US.
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