Fondenel, the pension fund for the managers of Italian energy company Enel, has introduced a new investment option for members called Dinamico (Dynamic).
Under the new option, the pension fund will pursue a strategy with a strong exposure to equities, through a new life cycle, it said.
Fondenel believes the Dynamic option will suit members who look closely at expected profitability and portfolio growth potential, and that tolerate volatility in terms of returns, the scheme added in a note.
The Dynamic option adds to the two other life cycle plans, the Standard and the Conservative (Conservativo), offered by the pension fund.
The scheme pursues a more balanced strategy with the Standard plan, investing both in equities and in bonds.
This option suits members seeking a compromise between potential for capital growth and stability of investments, Fondenel said.
Through the Conservative life cycle, assets are invested mostly in bonds and money market funds, providing an option for members seeking lower volatility and protection of capital saved.
The scheme considers the life cycle options an “innovative approach” designed to simplify how pension assets are managed, and offering “dynamic” investment strategies optimising the risk/return profile of the allocations over a long-term time horizon, it added.
The life cycle plans foresee an automatic reallocation of the assets invested in the sub-funds, conducted every six months to progressively cut the exposure to financial risk and allocate the assets in the portfolio over time in less risky asset classes, but with lower expected profitability, the scheme added.
Fondenel’s assets are held in four sub-funds – Equity, Bond, Inflation-Linked Bond and Money Market – all managed by Amundi.
Generali Italia is responsible for annuity payouts.
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