ITALY - The circa €660m (US$840.9m) open pension fund Arca Previdenza is set to receive new members following a decision by supervisory authority COVIP that the €3m Fondo Pensione Complementare Nazionale Famiglia will be liquidated, MandateWire reports.
Arca Previdenza is part of Arca Sgr, which was founded by twelve Italian credit unions, offering five investment lines to members.
Danilo Masci, responsible for pension provision at Arca Sgr, said he could not say how much cash would eventually flow into the pension fund as the 1,500 members of Fondo Famiglia could also opt to have their positions paid out.
He added: "What I've heard is that the manager had already stopped managing assets, they had liquidated their positions and put everything in a bank account. They told us 'we don't have problems with the markets these days because we're liquid'."
However, the actual liquidation of the pension fund itself is still outstanding and is likely to happen in January, according to Masci.
Fondo Famiglia ran a balanced investment line consisting of 70% European bonds and 30% equities, with Eurizon Capital on a balanced mandate. Pioneer Investments was on standby to join the roster at a later date.
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