ITALY - Italian pension fund service provider PensPlan Centrum posted a 13% profit for 2009 on the back of equity gains.
PensPlan said the results were also impacted by the results of Dutch manager APG, which returned 19.7% in 2009. APG manages part of PensPlan assets, following an agreement the two managers signed in October 2008.
PensPlan manages a total of €2.3bn (US$3.04bn) on behalf of four defined contribution pension funds - Laborfonds, Plurifonds, Profi and Raiffeisen - which have a maximum of 50% of their portfolios invested in equities.
Other allocations are in fixed income, cash, private equity and property, both direct and indirect. Each of the four pension funds offers different subfunds, which all allocate different percentages of their portfolios to the different asset classes.
Martha Stocker, responsible for retirement policies for the local government of the Trentino Alto Adige region - a major shareholder in PensPlan - said 95% of scheme members had a higher return for their TFR invested in the pension plans than those who left it to their employer.
The TFR is a severance payment all Italian employees are entitled to. A 2007 legislative reform allows workers to invest their TFR into their pension fund.
Stocker said: "The return of the TFR invested in the pension fund was 0.6% higher. If in absolute terms, this result might not seem satisfactory, in 30 years this represents a capital increase of 20%."
Profi is the largest of the funds managed by PensPlan with €990.2m under management, followed by Laborfonds with €954.4m, Plurifonds with €181.6m and Raiffeisen with €145.8m.
PensPlan also delivers risk management, manager selection and asset liability modeling to pension funds and institutional investors throughout Italy.
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.
In this week's Pensions Buzz, we want to know whether bosses should have to pay into the same staff DB scheme as their workers rather than their own executive pension fund.