Inarcassa, the pension fund for self-employed engineers and architects in Italy, has seen assets under management (AUM) increase to over €14bn at the end of December, as a result of a rebound in equity and bond markets, it said in a statement.
The increase in the amount of assets by €500m was also caused by contributions paid in the last months of 2023, it added.
Inarcassa recorded a gross operating return of approximately 7.7% last year, well above the target set by its strategic asset allocation of 5.4%.
The realignment of its new strategic asset allocation (SAA) approved in mid-October is progressing with the aim to complete the process in the first months of this year and mitigate timing risks, the scheme said.
The new SAA led to a reallocation of assets in favour of the global government bond component in its investment portfolio.
The scheme seized a tactical opportunity by bringing forward the process of realignment to the new SAA for 2024 earlier than expected, betting on global bonds seeking higher yields to maturity, as interest rates increase, it said.
During its last meeting, the scheme’s board of directors decided a realignment of the Italian government bonds portfolio, cutting exposure to global equities.
The scheme has also decided to increase investment in illiquid vehicles through private debt funds excluding Italy, and to increase investment in real assets in Italy through the allocation of funds in infrastructure projects, it said.
Inarcassa conducted a new round of investments last year in the real economy in Italy and abroad, with assets invested in private markets totalling €2.6bn, against approximately €3.3bn of commitments subscribed, and distributed across over 150 domestic and international vehicles.