On 20 December 2016, Covip (the Italian Pension Funds Authority) published a survey on the investment policies adopted by self-employment pension funds (Casse Professionali) during year 2015 (“Document”).
The Document firstly assesses the allocation of financial resources between the different asset classes and, in particular:
- Real estate (EUR 18,5 billions);
- Debt securities (EUR 26,3 billions);
- Equity securities (EUR 12,3 billions);
- UCITS (EUR 26,3 billions);
- Other types of investment – including, inter alia, liquidity (EUR 6,4 billions) and insurance policies (EUR 391 millions);
- Derivative financial instruments (EUR 10,8 billions).
While social security funds invest slightly more in domestic assets (52% of the overall investment), pension funds invest more in foreign assets (61,9%).
The Document then focuses on the different resources’ management methods adopted by funds:
- Direct (45% of the overall assets);
- Indirect (23,1%);
- Through UCITS (31,9%).
It is also highlighted that the activities involving a depositary entity amounted to EUR 26,3 billion (34,8% of the total).
The overview ends with a consideration on the current legal framework, with regard to the regulation of investment policies for social security funds. In particular, the absence of a specific legislation and the resulting delegation of the whole matter to the decision-making autonomy of the funds’ management bodies, has given rise to a lack of uniformity in investment choices.
The Document can be found, in Italian language only, here.
