In-depth report on investing for our pension fund and asset management readers from our award-winning journalists.
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Italy’s pension industry continues to develop, albeit at a slow pace. Italian pension funds are adapting their strategies to the volatile and uncertain market regime, by purchasing inflation-linked assets and by taking advantage of potentially higher yields on domestic government bonds. However, as our lead article highlights, they are generally staying true to their long-term diversification strategies, which consist of gradually allocating to alternatives including private equity, private debt and infrastructure. Some have bought shares in the Bank of Italy, a private equity-like investment.
The assets of the leading 1000 European pension funds increased by well over €600bn in our latest survey – a large portion of which can be attributed to strong investment returns on the back of a sustained post-COVID rebound over the course of 2021. Developed market equities returned over 30% in euro terms in 2021, compared with losses of around 4.7% in global aggregate bonds.