Cometa, the Italian supplementary pension fund for the metal industry with assets worth over €13bn, is tendering 10 mandates for its ‘Monetario Plus’, ‘Reddito’ and ‘Crescita’ sub-funds, following a review of its investment policy, it said today in a statement.
The pension fund’s investment strategy review has led to an increase of the risk profile of its three sub-funds while maintaining a prudent approach, it said.
Cometa plans to manage the Monetary Plus option calculating ex-ante volatility within a limit of 1.25%, with risks based on future developments in order to set up an even more effective management of the assets, it said.
For the management of assets in the Monetario Plus option, which is for members close to retirement, Cometa is tendering two types of bond mandates worth €615m that are “risk-controlled”, it said. The sub-fund aims to protect capital over a period of time not exceeding five years.
Cometa is tendering instead six multi-asset total return mandates worth €1.6bn for the management of the Reddito sub-fund, which remains the default option for members joining the fund.
The sub-fund aims for a return in line with the appreciation trajectory of the severance pay Trattamento di Fine Rapporto (TFR) over a period of 6-10 years.
Reddito is increasing its risk profile and diversifying its investments by raising the maximum investment limit for its equity allocation to 50% from 40%, and the volatility is calculated ex-ante within the limit of 8%.
Cometa is tendering two multi-asset mandates worth €612m for the Crescita sub-fund with active benchmarks, instead of the previous active but risk-controlled multi-asset type of mandates, aiming to maximise returns over a period of at least 10 years.
The Crescita sub-fund suits younger members of the pension fund with a higher tolerance to risks, and the limit for equity investments is set at 60% of assets, coupled with broader, global diversification of investments.
Finally, Cometa will award the mandates to asset management companies proving to have integrated ESG standards and that will comply with the “rigorous sustainability policy” of the pension fund, it said.
Interested asset managers can request further information on how to participate online.
The Italian pension fund has decided to review its investment strategy after conducting an analysis on the take on risk of its members and their social security needs, in addition to an analysis of the fund’s financial results of the last five years, a study of the current market context and medium to longer-term outlook of its investments. It has over 450,000 members.
Riccardo Realfonzo, president of Cometa, said: “The review of the investment policy is the result of an analysis on the preferences and orientations of the members, and of metalworkers who are not members [of the pension fund].”
He added that the fund would “seek bigger returns, always in view of a calculated risk in particular for young people” in the Crescita sub-fund.