IPE: Pension reform could help Italian schemes to diversify further

20 December 2011

Italian pension funds have predicted that reforms expected to be approved by the second chamber of parliament this week – together with an investment law change scheduled for 2012 – will help local schemes to diversify their portfolios further.

But they said they planned to wait until after the reforms had come into effect before adjusting their asset allocations. Alessandro Stori, general manager at Fondenergia, said: "The fact the Italian government is seeking to increase by at least four years the minimum legal retirement age in future means the substitution rate would fall significantly. Our aim is to maintain that substitution rate at around 100 per cent. As early as January 2012, we will then analyse the effect of the first-pillar reform on this substitution rate and see what asset allocation strategy can be implemented."

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