Fondenergia appoints Azimut for global equity as new strategy takes effect

Fondenergia, the Italian pension fund for the energy sector, has awarded a global equity mandate in its ‘Bilanciato’ sub-fund to Azimut, as it begins implementing a revised investment strategy.

The fund is also considering expanding its allocation to alternatives within its ‘Garantito’ sub-fund.

According to the fund’s updated investment policy, which came into force on 1 July, Azimut will manage 11.1% of the €3.2bn ‘Bilanciato’ sub-fund under a mandate running until June 2030.

The changes follow a strategic review in which Fondenergia assessed macroeconomic conditions, asset class return expectations and policy objectives across the ‘Bilanciato’ and ‘Dinamico’ sub-funds. As part of the overhaul, a life-cycle option for members was introduced on 1 July.

The new strategy also involves an increase in the equity allocation of the €1bn ‘Dinamico’ sub-fund by around seven percentage points. Azimut already manages global equities within this sub-fund, while Amundi is responsible for global bond investments.

The mandates of the asset managers across the ‘Bilanciato’ and ‘Dinamico’ sub-funds have been extended as part of the strategic update, the fund said.

Fondenergia may also consider adding alternative assets to the €340m ‘Garantito’ sub-fund – its smallest portfolio – following discussions with the manager. The sub-fund is expected to allocate 2% of its assets to alternatives via a satellite portfolio, according to its 2024 financial statement.

The fund already invests in alternatives through the satellite portfolios of the ‘Bilanciato’ and ‘Dinamico’ sub-funds. Exposure includes a private equity mandate run by Neuberger Berman and direct investments in four alternative investment funds (AIFs) focused on real estate and infrastructure.

Infrastructure investments, launched in 2022, are held in two AIFs managed by F2i, as well as one each by Azimut and Green Arrow Capital.

Fondenergia’s so-called strategic portfolio includes investments in Bank of Italy equity, managed via mandates awarded to UBS Asset Management within the ‘Garantito’ sub-fund and to Amundi in the ‘Bilanciato’ portfolio.

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