ITALY - Fonchim, the Italian chemical workers' pension scheme with more than €1.9bn under management, is looking for new managers for around €550m of assets.

The fund has confirmed mandates to Eurizon Capital, Pioneer, Duemme, and Credit Agricole but has put an official tender out for new managers as the head count of its member and its assets under management have increased significantly.

The 10-year-old scheme, which already covered a large chunk of its sector, has increased members to 167,000 compared to less than 120,000 last year.

This increase occurred as younger workers, with less than 15 years of service, requested 100% of their severance pay, or TFR (trattamento di fine rapporto), be left with the fund, rather than fall under the state system, as part of Italy's reform of the pension system last year.

'We have increased the quantity and the quality of the assets, with a higher number of assets per member," said Andrea Girardelli, director of Fonchim.

"For the time being, we will not add more compartments but I don't rule out that as assets increase we may make some additions.'

The fund currently has four components. The 'Stabilita'' compartment sees 70% of the assets invested in fixed-income and the rest in equities. The 'Crescita' compartment has 60% of the money invested in equities and the rest in fixed-income. The remaining two, 'Moneta' and 'Garantito', have 100% of the assets invested in fixed income and currency markets respectively.

The scheme has appointed Italian consultant European Investment Consulting to work alongside Mercer and advise Fonchim on the selection of managers.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email