Fondo Byblos, the Italian second pillar scheme for the paper, publishing and media industries, has recorded losses on investments for all three sub-funds last year.
The Garantito sub-fund, managed by UnipolsSai and investing mostly in bonds, returned -6.29% in 2022.
The Bilanciato sub-fund – which sees Groupama and Allianz Global Investors run the global active section, Lazard and Amundi manage the limited risk global strategy, and Neuberger Berman handle private debt, private equity and real assets – invests in a mix of equity, fixed income and private assets, returned -9.72% last year.
The Dinamico sub-fund, managed by Eurizon Capital and investing mostly in equities, returned -11.39% last year.
The pension fund can invest up to a maximum of 15% of its assets in Alternative Investment Funds (AIFs), according to the scheme’s investment policy.
The allocation to illiquid alternative investments means that the pension fund will divest from liquid asset classes such as equities and high yield bonds, it added.
Byblos had decided to increase its equities weighting in two sub-funds – Bilanciato and Dinamico – from 30% to 35%, and 50% to 60%, respectively, at the time of reviewing its strategic asset allocation, and considering the relatively low average age of the members of its sub-funds, it said.
The negative returns last year, particularly that of the Garantito sub-fund, was the result of significant losses in bond markets, it said.
All asset classes had negative returns in 2022 with the exception of commodities and the US dollar.
The scheme is reminding members that losses cement only if assets are withdrawn from the sub-funds, for example in case of redemptions, change of sub-funds, or of pension fund.
Members should choose a sub-fund considering how long they will remain a member, age, income, employment situation, personal savings, and personal risk appetite, it said.
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