The Italian pension fund for the fashion and textile sector, Previmoda, with €1.6bn on total assets, has reshuffled its investment options for members, expanding the guarantees on contributions paid.
The scheme has introduced last year two new investment options that are a combination of assets invested in the sub-funds ‘Smeraldo’, ‘Garantito’ and ‘Rubino’.
With one of the new options, members can invest 50% of their assets in the ‘Rubino’ sub-fund, and 50% in ‘Smeraldo’ sub-fund, according to the scheme’s management report for 2023.
The ‘Rubino’ sub-fund, which invests 40% in debt securities and 60% in equities, suits members seeking higher returns in the long term (more than 15 years). The ‘Smeraldo’ sub-fund, instead, invests 67% in debt securities and 33% in equities.
The other new investment option is a combination of the ‘Smeraldo’ (50%) and ‘Garantito’ (50%), the scheme added in the report.
The sub-fund Garantito receives severance payments (Trattamento di Fine Rapporto, TFR), guaranteeing a payback of contributions. It is run by Generali Insurance Asset Management, and invests mainly in short/medium term debt securities of both public and private issuers, and only up to 20% of its assets in equities.
Following discussions with Generali, the scheme has decided to expand guarantees on contributions paid to the period prior to 1 January 2023, and in case of healthcare expenses, or a request for earlier payouts to members who intend to purchase or renovate a home.
The scheme has also extended the mandates with its other asset managers, at the same time reviewing to some degree the strategic asset allocation for the ‘Smeraldo’ sub-fund, it said.
Previmoda has also reviewed its life cycle option to start investing assets of members that still have to work over 22 years to retire in the more risky ‘Rubino’ sub-fund, gradually moving to 50% ‘Rubino’ and 50% ‘Smeraldo’.
Italian pension funds are increasingly choosing to introduce new investment and life cycle options for members.
Fondo Pegaso has recently set-up the new ‘Crescita’ sub-fund, adjusting its life cycle option, increasing its equity allocation. Fondenel has also designed a new life cycle option, available to members in two risk /return profiles, so-called Standard and Conservative.
Fondo Espero has also set up a new ‘Dinamico’ sub-fund for higher risk investments, and a life cycle investment option.
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