Fondo Fon.Te, the pension fund for Italy’s commerce, tourism and service sector workers, has awarded a €800m mandate to Credit Suisse Asset Management to run its conservativo fund. The contract is for 10 years.
Credit Suisse manages in total 36 institutional mandates in Italy worth over €6.5bn in assets. The firm started its partnership with Font.Te in 2004, with the first ESG-compliant mandate in 2004.
Fon.Te has conducted an overall review of the management structure of its conservativo fund. It has also mandated UnipolSai Assicurazioni to manage a total return strategic share of 50% of the fund for 10 years.
It has assigned the remaining 50% of the share of the fund with a ‘benchmark’ mandate to Credit Suisse, the fund said.
The performance of the ‘benchmark’ mandate will be checked against a basket of financial market indices including 96% bonds and 4% equities, while the total return mandate will have as reference the appreciation rate of Trattamento di Fine Rapporto (TFR) severance payments.
As part of the total return mandate, the manager may invest up to 15% of assets in undertakings for collective investment (UCI) alternative investment funds, with additional commissions applicable to a maximum of 1.75%.
Asset allocation in the conservativo fund is made up of 2% in equities, 48% in bonds and 50% in appreciation rate of TFR, as of 1 November.
The conservativo fund carries 100% guarantees on contributions paid in the event of death, permanent disability, retirement, and unemployment for a period over 48 months.
The fund repays 50% of paid contributions in the event of health expenses, and house restructuring or purchase. The other three of Fon.Te’s investment funds are the sviluppo, crescita and dinamico.
Assets under management at Fon.te exceeded €4.2bn as of December 2019, a 12.40% compared to 2018, according to its financial statement.
Healthcare scheme ups assets in garantito, bilanciato options
Fondo Perseo Sirio, the pension fund for workers in the healthcare and public administration sectors, has recorded an increase in assets for its garantito investment option to €182.1m in September, up 1.66% from August.
Bond assets are underweight at 89.50% against a 95% benchmark. Equities, too, are underweight at 3.18% compared to the 5% benchmark, with 7.3% of assets in liquidity.
Assets in the bilanciato fund reached €28.5m in September, up 2.96% compared to August. The fund has shown a monthly return of -0.16%, while the return is -0.85% since the beginning of the year.
Assets are underweight both bonds (56% compared to 70% expected) and equities (21% compared to 30% expected), while 23% of the assets, including undertaking of collective investments (UCIs), is in liquidity as the fund finds it difficulty to achieve yields on bonds and as volatility in equity markets remain high.
Laborfonds names new finance director
Laborfonds, the second-pillar pension fund for employees in the northern Italian region of Trentino-South Tyrol, has appointed Elena Corazzolla as manager of the finance function.
The fund also named Eugenio Quarti as the new head of risk management. With the new nominees, Laborfonds has reviewed its internal reorganization with a view to implementing the IORP II Directive.
Enpapi appoints new general manager
Enpapi, the cassa di previdenza for nurses, appointed Francesco Rabotti as its general manager, effective 5 November.
Rabotti is a lawyer with extensive managerial experience in private and public institutions within the pension sector and in the business services segment.