Laborfonds, the €4.3bn pension fund for employees in Italy’s Trentino-Alto Adige/Südtirol region, has expanded its roster of asset managers and introduced a satellite equity portfolio as part of a strategic overhaul.
The pension fund has increased the number of external managers to six, citing asset growth, the need for strategy diversification and the aim to reduce concentration risk.
Generali Investments has been appointed to manage semi-passive global bond investments across the ‘Linea Bilanciata’ and ‘Linea Dinamica’ sub-funds, according to director Stefano Pavesi.
BlackRock and Eurizon Capital have secured active mandates to manage global bond portfolios within ‘Linea Bilanciata’ – Laborfonds’ largest sub-fund, with €2.89bn in assets under management.
For equities, Allianz Global Investors, Amundi and Schroders have been selected for active global equity mandates spanning both ‘Linea Bilanciata’ and ‘Linea Dinamica’.
Before the latest review, Laborfonds’ manager line-up comprised Amundi, AllianzGI, Eurizon and BlackRock, according to its 2024 financial statement.
The new mandates, effective 1 July, account for 75% of the fund’s total assets and follow a strategic asset allocation review aimed at aligning the portfolio with evolving market conditions, said president Lorenzo Bertoli.
Under the revised strategy, ‘Linea Bilanciata’ will raise its equity allocation from 30% to 35%, while fully exiting emerging market debt to streamline its bond holdings in response to market changes that began in 2022.
‘Linea Dinamica’, which manages close to €400m, will increase its equity exposure from 60% to 70% through the creation of a new satellite portfolio focused on private equity.
Bertoli said the manager selection process had enabled the pension fund to cut management costs by more than 10% and enhance the sustainability profile of the sub-funds.
“We are also strengthening our focus on investments in the real economy through the creation of a ‘satellite’ private equity portfolio,” he added.
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