Foncer, the Italian pension fund for the employees of the ceramic and refractory materials industries, is seeking to bolster its private markets allocations.

Foncer has reviewed the limit for investments in its Bilanciato (balanced) sub-fund, that invests in private assets, it said in its financial statement for 2023. 

The pension fund has increased the maximum amount to commit to private equity investments through consortia set up with other schemes, to stabilise the amount invested in private assets held in Bilanciato, it added.

It has revised the benchmarks “of the individual traditional mandates” of Bilanciato to realign investments to the strategic asset allocation, reducing the share of equities in the portfolio, in favour of private assets, it added. 

Last November, pension funds Foncer, Fondo Gomma Plastica, Pegaso e Previmoda reworked the mandate with Neuberger Berman to conduct new investments in private equity amounting to €115m, on top of €216m already committed to nine alternative investment funds, the schemes said.

The pension schemes entrusted Neuberger Berman to manage further assets for private equity investments looking at the “satisfactory management” of funds, selection of Alternative Investment Funds (AIFs), capital commitments and calls, and good performances achieved, they said. 

The pension funds bumped up the maximum amount of investment in private equity with an additional €10m, bringing the maximum amount of commitments to a total of €38m, Foncer said. 

The review of investment limits in Bilnanciato came as the pension scheme signed an agreement with Eurizon Capital Real Asset (ECRA) to mange further assets in the sub-fund for investments in infrastructure. 

Foncer has also joined fellow pension funds Fopen, Fondo Gomma Plastica, Fondo Pegaso and Previmoda under the so-called Vesta Project (Progetto Vesta) to allocate a total of €168m to infrastructure, including €18m channelled from the Bilanciato sub-fund. 

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