Italian overview: Inarcassa continues its private debt allocation | New
Inarcassa, the pension fund for independent engineers and architects, continues its allocation to illiquid assets, namely private debt funds, he said in a note.
Investments in private debt focus on the financing of small and medium-sized Italian companies. The allocation to this asset class confirms Inarcassa’s interest in profitable projects supporting the real economy, he said.
Inarcassa’s board of directors has decided to reduce its allocation to US equities slightly in favor of corporate bonds.
The pension fund, which had around € 12.2 billion in assets under management at the end of May, posted a gross operating return of over 2.5% in the first quarter of this year.
Journalists found to invest in real assets
The journalists’ pension fund, the Fpcgi, wishes to invest in its first Alternative Investment Funds (AIF).
Fpcgi plans to allocate up to € 26 million for private debt, up to € 30 million for infrastructure with a primary focus on Italy, up to € 20 million for private equity also with a primary focus on Italy, and up to € 20 million in global private equity with a European focus, he said.
AIFs could invest in private corporate debt through debt and credit securities of unlisted issuers, the fund said, adding that investment funds should pursue direct lending and senior lending strategies.
The AIF infrastructure fund is expected to target the transport, networks, health services, education and energy sectors, with at least 75% of the companies owned located in Italy.
For Italian-oriented private equity investment, the AIF may adopt private equity and development capital strategies, while the share of venture capital investments must not exceed 20%. Also in this case, 75% of the issuing companies must be domiciled in Italy.
The AIF for global private equity may also adopt buyout and development capital strategies, while the quota for venture capital investments must not exceed 25% and that at least 50% of companies must be based in Europe.
Institutional investors turn to ESG
More than half (56%) of Italian institutional investors adopt sustainable investment policies, according to a survey that is part of an ESG policy study conducted by Itinerari Previdenziali.
The study also showed that 97% of institutional investors surveyed who have not yet adopted ESG policies plan to include them in their strategies in the future.
It also reveals that institutional investors mostly opt for exclusion strategies (67%), up 2% over one year in 2021. Exclusions mainly target weapons products (89%). Impact investing has increased from 31% in 2019 to 48% this year.
Investors prefer social and green bonds (62%), social housing (55%) and microfinance (34%) for impact investing, he added. He also revealed that institutional investors have instead decided to use less thematic investment strategies, 44% this year versus 46% in 2020, and best-in-class, which saw a 50% reduction in 2020 to 44% this year.
They increasingly choose a hard engagement approach, involving interventions in general meetings or the exercise of voting rights, up to 22% this year against 8% last year.
The study selected 79 institutional investors managing total assets of over € 182 billion, including 19 industry-wide pension funds, 16 pre-reform funds, 14 pension funds, 16 banking foundations and 14 insurance companies.
Pegaso positive dinamico performance
Fondo Pension Pegaso, the second pillar pension scheme for employees of Italian utility companies, posted a return of 5.32% for its dinamico fund in 2020.
Its bilanciato fund returned 2.47% while its Garantito posted a return of 0.25% last year, according to the pension fund’s latest financial statement.
The dinamico fund is divided into 51% equities and 49% bonds, the bilanciato invests 31% in equities and 69% in bonds, and Garantito 98.5% in bonds and 1.5% in equities.
Pegaso managed net assets of 131.7 million euros in its Garantito fund, 959.9 million euros in the bilanciato and 122.4 million euros in the Garantito fund, at the end of 2020, according to the press release. .
The fund – which totaled € 1.2 billion in assets under management at the end of April this year – is bidding for a specialist global active equity mandate for around € 90 million. euros for a five-year contract to manage the assets of his mentioned bilanciato fund.