Previndai, the Italian industry-wide pension fund for companies’ managers, has increased its exposure to European corporate and government bonds, and inflation-linked bonds, it said in its financial statement for 2022.
The pension fund has simultaneously cut its exposure to global corporate bonds, high-yield and emerging markets bonds, it added in the report.
Last December, Previndai conducted a review of its strategic asset allocation for the sub-funds Bilanciato and Sviluppo to adjust its investments’ risk-return profile to changing market conditions.
The pension fund is investing in alternatives through 12 alternative investment funds (AIFs) in different asset classes.
It is allocating assets to the the Barings EPLF II fund for direct lending in Europe, and in private equity in Italy through the Progressio Investimenti III, Neuberger Berman Renaissance Partner III, Star Capital Private Equity Fund IV, Clessidra Capital Partners 4, Nextalia Private Equity, and Hyle Finance For Food One funds.
It also invests in infrastructure through the Azimut Infrastrutture per la Crescita - ESG fund, F2i Fondo V, Eurizon Iter funds in Italy, and in Europe through the Ancala Infrastructure Fund II and Equitix European Fund I, according to the report.
It has recalled €270m invested in alternative asset classes in 2022, equivalent to 68% of its overall commitment of €399m.
According to its strategic asset allocation, Previndai targets 10% of total assets invested in alternatives, and up to 50% allocated to Italy. For this reason, the board of directors of the pension fund has started a tender last year to select alternative investment funds for direct lending investments in Europe and globally.
The number of members contributing to the pension fund has increased year-on.year by 2.18% to 86,535 in 2022, with contributions totalling approximately €985m, up 5.5% year-on-year.
Assets under management increased slightly to €14.3bn, with its two Assocurativo sub-funds holding 75.7% of total assets, or €10.4bn. The Bilanciato sub-fund holds €2.05bn, and Sviluppo €1.29bn.
Eurofer increases amount of direct investments
Eurofer, the pension scheme for railway workers, has increased direct investments from €47.37m in 2021 to €49m in 2022, according to its latest financial report.
Direct investments include for the largest part shares in close-ended mutual investment funds (€49m) and bank deposits.
The pension fund has invested in the Macquaire European Infrastructure Fund 5 Scsp and in the private debt fund Credit Solutions IV Senior Euro managed by Permira with regard to direct investments, it said.
Eurofer’s assets under management fell by 5% year-on-year, from €1.33bn in 2021 to €1.26bn in 2022, with €85bn paid for pension benefits. The number of members increased by 5.6% to 84,465.
At the end of February, the sub-funds Garantito, Bilanciato and Dinamico returned 0.27%, 1.46% 2.30%, respectively, inverting the negative trend recorded in 2022, according to the report.