ITALY - The €2bn pension fund for industrial managers, Fondo Pensione Previndai, has selected 10 new asset managers as it starts offering members an alternative to insurance contracts.
Previndai’s members have so far saved through insurance policies. But now they have been given the chance to invest in two portfolios: a bond strategy called “balanced” and an equity one named “development”.
Members will be asked to decide whether to keep insurance policies, shift to the new pension fund option or start a hybrid arrangement including both options.
Rome-based Previndai will offer advice on the best solution on an individual basis, so the volume of contributions has yet to be decided.
Sebastiaan Schrikker, director of institutional advisory at Banca Gesfid, the fund’s consultant, said that the new saving solution would not lead to the dismissal of the current insurance companies but was likely to grow in the long term.
According to ‘International Pension Funds and their Advisors’ Previndai employs Fondiaria SAI, Inavita, Generali Vita, Meieaurora, Milano Assicurazioni, Riunione Adriatica di Sicurta Spa, Toro Assicurazioni and Societa’ Reale Mutua.
Previndai has selected Franklin Templeton Institutional for two US equity briefs one for each portfolio, Lombard Odier Darrier Hentsch for two European equity mandates, also split between “balanced” and “development”.
“Balanced” will be run by Generali Asset Management, in charge of Italian equities, Vegagest SGR Spa and Morgan Stanley Investment Management, both hired for euro-bond mandates, as well as Credit Agricole Asset Management and Mellon Global Investments for global bonds.
“Development” has been entrusted to the Bank of New York (US equity), J P Morgan Fleming Asset Management (European equity) and San Paolo IMI (Italian equities and Euro bonds).
The fund said the mandates awarded to LODH and Vegagest for European equities and Euro bonds will be given priority for the “balanced” portfolio. The first two mandates to be funded within the “development” portfolio will be European equities, also managed by LODH and San Paolo IMI.