Inarcassa, the first pillar pension scheme for engineers and architects, is increasing allocations in private markets and equities in Italy as it records returns of more than 7.6% in 2024, exceeding the expected return target for the whole year of 6.5%, the scheme said in a statement.
The fund’s assets under management stood at just under €15.9bn at the end of December, up from €14.1bn at the end of 2023, as Inarcassa announced it was increasing investments in private markets and equities with a focus on Italy.
In December, the scheme’s board of directors approved a new round of allocations to equities through funds investing under the Undertakings for Collective Investment in Transferable Securities (UCITS) framework.
It will invest in Italian listed companies, considering also the possibility of channelling assets into Italian small and medium-sized enterprises (SMEs) through funds providing liquidity and that can also be liquidated when necessary, it said.
Inarcassa invests in domestic equities to support Italy’s economic growth, and to promote the competitiveness of the internal market, it added.
The first pillar scheme is pursuing the same strategy of industry-wide second pillar pension funds (Fondi Negoziali) that support the domestic economy through public equity investments in SMEs based in Italy.
The share of Inarcassa’s directly managed liquid asset includes a portfolio made up of 21 listed securities of Italian companies worth approximately €1.22bn, mainly invested in the financial sector, according to the scheme’s budget forecast for 2025.
Last year, Inarcassa reviewed its domestic equities portfolio to strategically balance and diversify allocations, starting to invest in the discretionary consumption sector, which now represents approximately 3% of the portfolio, while non-discretionary consumption equities make up 3.7%.
It invested a further €65m in Italy’s banking and automotive sectors last year, and a further €20m in Generali stocks.
Inarcassa’ s board of directors has also approved further investments in private equity, private debt and venture capital funds with a geographical focus on Italy.
The scheme invests approximately €2.2bn in private markets, against approximately €3.3bn commitments, spread over 180 domestic and international vehicles, it added.
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