The article illustrates how market scenarios and regulatory developments are affecting Italian Pension Funds, the so-called “Casse Private” as well as Banking Foundations. Overall, ESG and private markets represent the key 2020 investment themes in the Italian institutional market.
For Pension Funds the focus is currently on complying with the requirements introduced by the Institutions for Occupational Retirement Provision II Directive («IORP II»), which is impacting the overall governance structure of these entities. For “Casse Private” the document illustrates the path towards replacing, at least partially, the large portfolio allocations to low yielding fixed income strategies.
Lastly, for banking foundations, we analyze the impact of the take profit activity wave that took place towards the end of 2019 and how it has affected the overall liquidity of these portfolios, while keeping in mind the requirements introduced by the MEF-ACRI agreement.