The sub-fund ‘Crescita’ of the Italian pension fund for the chemical sector, Fonchim, returned 10.32% last year, just above its benchmark of 10.11%, surprisingly facing low volatility during the year, despite a predominant share of assets invested in equities, the scheme said in a note.

Returns recorded by the ‘Crescita’ sub-fund, investing assets worth approximately €900m, were driven mostly by positive developments in financial markets last year. The sub-fund invests 60% of total assets in equities and 40% in bonds, it added.

Anima and Credit Suisse held active and passive asset management mandates, respectively, to invest the sub-fund’s assets in equities, as of the end of 2023.

The performance of its equity investments differed according to geography, with the highest returns recorded for US equities and, in general, through investments in developed countries excluding countries in the euro zone, it said.

Returns on equities in countries in the euro zone and in emerging markets were lower, but still significant, the scheme said.

The sub-fund ‘Stabilità’ returned 5.92% in 2024, higher than its benchmark (5.65%), but with a slightly more pronounced volatility, Fonchim said.

Assets invested in equities contributed significantly to the overall returns of the ‘Stabilità’ sub-fund, the largest among the scheme’s sub-funds with close to €7.5bn in total assets.

In this case, too, equity investments in countries excluding the euro zone, and in particular in the US, fared better than equities in the euro zone and emerging markets, it said.

The scheme invests only a small share of assets of ‘Stabilità’ in emerging market equities, it said without disclosing the value. ‘Stabilità’ invests 30% of its assets in equities, 70% in bonds, and a minor share in a private equity Alternative Investment Fund (AIF).

The scheme’s ‘Garantito’ sub-fund, holding close to €300m in assets, and investing predominantly in bonds, returned 2.64%, lower than its benchmark (3.20%), against an equally lower volatility, the scheme said.

Fonchim has swapped Amundi with UnipolSai to manage ‘Garantito’ assets.

It has also decided to tender five mandates worth €2.71bn to invest assets held in the sub-funds ‘Stabilità’ and ‘Crescita’ in fixed income and equity.

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Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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