Assets under management (AUM) for complementary pension schemes in Italy increased by 8.2% year-on-year in 2024 to €243bn, according to figures published by pension regulator Covip.

There was also an increase in AUM of 9.9% to €74.6bn in industry-wide pension funds (Fondi Negoziali), by 14.3% to €37.3bn in open pension funds, and by 9.6% to €54.7bn in private pension plans (PIP), figures show. Assets grew on the back of positive returns on investments and contribution flows, Covip said.

Like the previous year, the 2024 returns for complementary pension schemes were overall positive.

Pension schemes with a higher exposure to equities recorded higher returns compared to those with a lower exposure. The schemes’ sub-funds with a higher exposure to equities recorded on average 10.4% returns for industry-wide pension funds and open pension funds, and 13% for PIPs.

The sub-funds investing both in equities and bonds recorded on average 6.4% returns for industry-wide pension funds, 6.6% for open pension funds, and 7% for PIPs, according to Covip.

Lower average returns, but positive, were also recorded by so-called ‘Garantito’ sub-funds investing heavily in bonds, the regulator added.

Over a 10-year period, between 2014 and 2024, the sub-funds with a higher exposure to equities achieved on average 4.5% returns in all types of complementary pension schemes.

The sub-funds investing both in equities and bonds recorded average returns of between 1.7% and 2.7% over a 10-year period, while the revaluation of severance pay (Trattamento di Fine Rapporto, TFR) stood at 2.4%.

Some pension funds, such as Espero (for school employees), Fondo Pegaso (the scheme for employees of Italian utility companies), Fondenel (the scheme for the executives of electricity and gas company), are changing pension plans to boost investments in equities offering higher returns in the long term.

Covip noted in its report that, during 2024, complementary pension schemes in Italy collectively received contributions amounting to €15.7bn, up by 7% year-on-year. Industry-wide pension funds recorded the highest increase of 8.8% year-on-year in terms of contributions, it added.

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