Fondo Gomma Plastica, the supplementary pension fund for workers in the materials industry, has taken the strategic decision to create a specific mandate exclusively investing in Italian equity, cutting down on the “Italian component” in traditional multi-asset mandates, director general Luca Ruggeri told IPE.
“This decision is motivated by the positive and resilient performance of the Italian stock market,” he explained.
The scheme is working on the equity mandate with other pension funds joining as part of a consortium, Ruggeri added.
Gomma Plastica also aims to boost private debt investments, considered an important component of the portfolio to diversify allocations, and to record potentially higher returns.
It has prepared the ground for further investments in alternatives after making “some strategic adjustments” in recent months, aiming to support the performance of its sub-fund ‘Bilanciato’, Ruggeri explained.
The scheme has increased investments in private equity by €35m, and created a new mandate for investments in infrastructure worth €40m, with a focus on Italy.
“Italy, in particular, offers interesting opportunities in this sector, as infrastructure development and optimisation projects are underway,” he said.
Overall, for 2024 Fondo Gomma Plastica plans adjust its investment portfolio ready to react to adverse situations, without radical changes.
“The goal is to solidify performance and maintain an alignment with the benchmark, especially with regard to the bonds component,” Ruggeri noted.
The basic strategy is oriented towards a “buy and hold” approach, avoiding excessive concentrations in the fashion and technology sectors, to remain aligned with the performance of the benchmark, while trying to reduce the risk of significant drawdowns.
Ruggeri explained that particularly in the tech sector performance is concentrated in big tech companies, influenced by algorithmic strategies used by investment firms, which can push prices and valuations up excessively.
So far this year, Gomma Plastica’s three sub-funds – ‘Conservativo’, ‘Bilanciato’ and ‘Dinamico’ – have returned 0.35%, 2.02% and 4.40%, respectively.
Positive returns for the ‘Conservativo’ option were driven by corporate bonds, and emerging market investments, Ruggeri added.
In the ’Bilanciato’ option, investments in the financial, energy and industrial sectors had a “significant impact” on performance, as opposed to government bonds, and investments in private equity and infrastructure recently underwritten did not have “sufficient maturity” to impact returns, he said.
Investment in tech, telecommunications and AI stocks pushed returns in the ‘Dinamico’ sub-fund, next to financial, energy and industrial sectors.
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