investment
Growth Compartment
The Growth compartment aims for a significant appreciation of invested capital through equity and bond investments in foreign and European markets.
Purpose of the Growth Compartment:
Significant appreciation of invested capital that suits an individual seeking high returns in the long term and is willing to accept potentially negative results in individual periods.
Recommended time horizon:
Long, over 10 years.
Risk level:
Medium
For more information on the investment policy and resource management, see the “Information Note“ and the “Investment Policy Document“.
Growth compartment performance
The following graph represents the performance of the unit value for the Growth compartment (from Dec. 2015 to present):
Please note: The unit value can vary considerably; however, the performance of pension funds should be evaluated over a sufficiently long time horizon.
Below is the trend of the Net Assets under management for the Growth compartment:
Warning: Past performance is not indicative of future results.
Crescita – tutti i Valori Quota
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Periodo | Valore della Quota (in euro) | Attivo Netto Destinato alle Prestazioni (ANDP in euro) |
|---|---|---|---|---|---|---|---|
| 1 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 31/12/2007 | 11,740 | 0 |
| 2 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 31/01/2008 | 11,379 | 0 |
| 3 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 29/02/2008 | 11,388 | 0 |
| 4 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 31/03/2008 | 11,352 | 0 |
| 5 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 30/04/2008 | 11,551 | 0 |
| 6 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 30/05/2008 | 11,529 | 0 |
| 7 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 30/06/2008 | 11,083 | 0 |
| 8 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 31/07/2008 | 11,173 | 0 |
| 9 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 29/08/2008 | 11,302 | 0 |
| 10 | admin_fondapi | 27/07/2024 09:13 | admin_fondapi | 27/07/2024 09:13 | 30/09/2008 | 10,667 | 0 |
| Periodo | Valore della Quota (in euro) | Attivo Netto Destinato alle Prestazioni (ANDP in euro) |
Sustainability Information
This financial product promotes environmental or social characteristics, but does not have sustainable investment as its objective.
Among the main environmental and social characteristics promoted by the product, we highlight:
- respect for human rights
- respect for workers’ rights
- environmental protection
- protection of relationships with key stakeholders (customers/suppliers/market)
- prevention of corruption and money laundering
- adherence to best corporate governance practices
The Fund defines its policy through an ex-ante ESG approach in the financial management of the compartment, including all assets in the managers’ portfolios (both bonds and equities) in this process. This approach is implemented through the adoption of ESG BENCHMARKS from the provider CONFLUENCE (ECPI), which include:
- A best-in-class approach (the selection of securities considers ESG scores in addition to traditional financial parameters)
- The definition of an investable universe (stocks and bonds) as a set of corporate and government issuers that the sustainability provider defines as investable according to their methodologies
- Exclusion of issuers belonging to the lowest ESG rating class (F)
The investment activity of the financial product’s resources is entrusted to specialized financial managers who invest according to the guidelines identified by the Fund within specific management agreements. The investment strategy refers to a benchmark index that operates across all financial sectors (there are no sector constraints).
The fund regularly receives bimonthly data from the advisor on the ESG characterization of the assets that make up the entire compartment in order to verify the ESG score for each of them. This allows for careful monitoring of the manager and provides early warning of potential exits of assets with low ratings.
Alignment with environmental or social characteristics is assessed through ECPI/Confluence’s ESG Rating Methodology, which through a rigorous and disciplined research process based on public information from issuers, specific data providers, and media sources, allows for the translation of mostly qualitative information into quantitative indicators, thus assigning a score and rating to each issuer.
The main limitation of the methodology or data is represented by the issuer’s failure to disclose environmental, social, and corporate governance information.
The Due Diligence process provides that the Depositary Bank receives daily information from the ESG advisor regarding the ESG investable universe and the ESG Black List, based on which the portfolio compositions are continuously monitored to verify their alignment with the environmental and/or social characteristics promoted by the Fund. The same control is also carried out on the limits and constraints indicated both by regulation and by agreement on the portfolios managed by the various financial managers to whom the investment activity is delegated. In terms of Engagement Policy, it should be noted that the pension fund is working to develop an increasingly effective engagement activity, both through the structuring of internal processes (indications regarding voting through its managers) and through collaboration with other shareholders.
It is the Fund’s belief that effective engagement activity should be promoted through the collaboration of multiple investors. For this reason, the Fund has been a PRI signatory since 2019. This characterization allows the Fund to become aware of and participate in various Collaborative Engagement activities. It will be the Fund’s task, through the will of its Board of Directors, to evaluate from time to time any collaborative actions promoted by the PRI or alternatively by aggregations of Funds coordinated also by the trade association (Assofondipensione) and concerning the sustainability objectives identified by the Fund.
The basic principles of the Fund’s investment strategy consider the filter of sustainable investments necessary to mitigate the overall long-term portfolio risks and as a useful tool for creating value in the society of the future. Since 2008, the Fund has decided to adopt an ex-ante ESG investment strategy for managing the Prudent and Growth compartments. In this way, ESG factors have a direct impact on investment activity through two instruments:
- Adoption of ESG benchmarks that incorporate environmental, social, and good governance factors in the selection of securities
- Adoption of sustainable investment universes within which securities with a low ESG rating are excluded
The Reference Index of the financial product is a composite index, whose Underlyings are equity and bond indices, which select securities issued by companies, countries, and supranational agencies that:
- are covered by a sustainability analysis by ECPI/Confluence, the appointed service provider
- meet minimum environmental, social, and governance (“ESG”) requirements
While excluding from the investable universe all issuers that:
- based on sector screening, are exposed to controversial activities, such as tobacco and unconventional weapons
- based on sustainability analysis, have received an insufficient ESG rating (F).
The reference benchmark is constantly aligned with the environmental and social characteristics promoted by the Fund through the periodic rebalancing activity of the underlying indices (quarterly for the equity component and monthly for the bond component) which ensures that the invested assets are covered by a sustainability analysis and meet minimum environmental, social, and governance requirements.
Further information on the Reference Index underlyings, its composition, ESG criteria, calculation method and rules for periodic revision and rebalancing, and the general methodology behind ECPI indices are available on the ECPI website
This financial product promotes environmental or social characteristics, but does not have sustainable investment as its objective.
The main environmental and/or social characteristics promoted by the Fund are:
- respect for human rights
- respect for workers’ rights
- environmental protection
- protection of relationships with key stakeholders (customers/suppliers/market)
- prevention of corruption and money laundering
- adherence to best corporate governance practices
The Fund’s benchmark selects securities issued by companies, countries, and supranational agencies that meet minimum environmental, social, and governance (“ESG”) requirements, excluding from the investable universe all issuers that:
- based on sector screening, are exposed to controversial activities, such as tobacco and unconventional weapons
- based on sustainability analysis, have received an insufficient ESG rating (F)
The Fund defines its policy through an ex-ante ESG approach in the financial management of the compartment, including all assets in the managers’ portfolios (both bonds and equities) in this process. This approach is implemented through the adoption of ESG BENCHMARKS from the provider CONFLUENCE (ECPI), which include:
-
- A best-in-class approach (the selection of securities considers ESG scores in addition to traditional financial parameters). This choice naturally directs investments made by the manager towards securities with a better sustainability profile, given that these are specialized benchmark management mandates. The manager, therefore, has the ability to invest in the assets of the investable universe but must be benchmarked in terms of risk/return with an explicit tracking error limit indicated in the technical mandates.
- The definition of an investable universe (stocks and bonds) as a set of corporate and government issuers that the sustainability provider defines as investable according to their methodologies. For information, the updated methodologies are reported on the provider’s website
- Exclusion of issuers belonging to the lowest ESG rating class (F)
It is necessary to emphasize how the procedure just described, in addition to ensuring FONDAPI’s commitment to sustainable and responsible issues, has guaranteed over the years the achievement of more than satisfactory financial results and usually better than the sector average.
The investment activity of the financial product’s resources is entrusted to specialized financial managers who invest according to the guidelines identified by the Fund within specific management agreements. The investment strategy refers to a benchmark index that operates across all financial sectors (there are no sector constraints).
For the Growth compartment, the planned allocation is: 50% bonds and 50% stocks.
The asset allocation aims to satisfy the environmental and social characteristics promoted by the financial product in accordance with the binding elements of the investment strategy, as defined previously.
The TEV constraint on financial management that uses sustainable benchmarks has a drag effect on an ESG investment policy.
Over time, the following minimum shares have been respected:
- 80% of investments are aligned with environmental and social characteristics (#1 Aligned with E/S characteristics).
- Up to 20% of investments are not aligned with these characteristics (#2 Other)
The structure of the asset allocation is defined as follows:
The fund receives bimonthly ESG characterization data from the advisor for the assets that make up the entire compartment in order to verify the ESG score for each of them. This allows for careful monitoring of the manager and provides early warning of potential exits of assets with low ratings. The report also includes a section dedicated to the Carbon Footprint of the portfolios in absolute value and relative to the benchmark.
Furthermore, based on the characteristics promoted by the product indicated previously, the ESG advisor provides:
- an ESG rating of the issuer
- a rating for the individual E, S, and G categories of the issuer
Based on the ESG Rating, assets with an F rating are excluded from management, i.e., those that do not demonstrate a sufficient sustainability profile.
Additionally, regarding Environmental metrics, the following indicators are calculated:
- Carbon: Weighted Disclosure (%)
- Intensity: GHG Scope 1 (tCO2e/$M)
- Intensity: GHG Scope 2 (tCO2e/$M)
- Intensity: GHG Scope 3 (tCO2e/$M)
- Intensity: Total GHG Emission (tCO2e/$M)
Alignment with environmental or social characteristics is assessed through ECPI/Confluence’s ESG Rating Methodology, which through a rigorous and disciplined research process based on public information from issuers, specific data providers, and media sources, allows for the translation of mostly qualitative information into quantitative indicators, thus assigning a score and rating to each issuer. In analyzing corporate issuers, ECPI uses a rule-based approach and uses about 80 indicators to assess environmental, social, and governance sustainability. This analysis produces a score and a rating. ECPI’s proprietary rating ranges from “F” to “EEE”, through 9 levels. In analyzing government issuers, ECPI has developed a methodology to assess governments’ adherence to principles and practices in areas such as respect for human and labor rights, respect for the environment, and the fight against corruption. The methodology evaluates, for the individual Environmental (E), Social (S), and Governance (G) dimensions and in aggregate (ESG), two areas:
- REGULATION: level of compliance of a Government with the main international treaties, conventions, and best practices
- IMPLEMENTATION: effectiveness of a Government in implementing international standards in its national legislation and in the actions taken to enforce it.
ECPI/Confluence’s ESG Rating Methodology is based on public information from issuers, specific data providers, and media sources.
The main sources include:
- Company annual reports
- Corporate Sustainability Reports, Environmental Reports, CSR Reports, and similar
- Investor Relations Office and investor presentations
- Company website
- Information providers (e.g., Dow Jones Factiva, Refinitiv, Trucost)
- Information services and media (newsletters from local and international institutions and NGOs)
- Screening of company certifications
- Screening of company participation in international institutions (e.g., UN Global Compact; Carbon Disclosure Project)
- Thematic websites promoted by international non-profit organizations
To ensure data quality, the ESG consultant, in its activity of attributing a sustainability rating to securities, uses a maker & checker process (two levels of control) that ensures the correctness of the rating attributed to each instrument. The information on which the rating is based is constantly updated and verified by the consultant. ESG data is collected by the ESG Consultant, who enters and historicizes it in a database. Based on the codified procedures of the research methodology, a score is attributed to the collected data for each dimension; these scores, once summed for the pillars of the ESG analysis, determine the rating of the instrument. A variable, but generally low, percentage of data may be estimated according to a defined methodology if not directly provided by the company. Typically, information such as Carbon Footprint, Scope 1,2,3 emissions, may be estimated.
The main limitation of the methodology or data is represented by the issuer’s failure to disclose environmental, social, and corporate governance information.
To overcome this problem, the ESG consultant uses a wide range of information sources to be able to cross-check the data used in assessing the sustainability profile of issuers.
The basic principles of the Fund’s investment strategy consider the sustainable investment filter necessary to mitigate long-term overall portfolio risks and as a useful tool for creating value in future society. Since 2008, the Fund has decided to adopt an ex-ante ESG investment strategy for managing the Prudent and Growth compartments.
In this way, ESG factors have a direct impact on investment activity through two instruments:
- Adoption of ESG benchmarks that incorporate environmental, social, and good governance factors in security selection
- Adoption of sustainable investment universes from which securities with low ESG ratings are excluded
Furthermore, the pension fund is working to develop increasingly effective engagement activities, both through structuring internal processes (voting instructions through its managers) and through collaboration with other shareholders. The Fund believes that effective engagement activity should be promoted through the collaboration of multiple investors. For this reason, the Fund has been a PRI signatory since 2019. This characterization allows the Fund to become aware of and participate in various Collaborative Engagement activities. It will be the Fund’s task, through the will of its Board of Directors, to evaluate from time to time any collaborative actions promoted by the PRI or alternatively by Fund aggregations coordinated also by the Trade Association (Assofondipensione) and concerning the sustainability objectives identified by the Fund
The Reference Index of the financial product is a composite index, whose Underlyings are equity and bond indices, which select securities issued by companies, countries, and supranational agencies that:
- are covered by a sustainability analysis by ECPI/Confluence, the appointed service provider
- meet minimum environmental, social, and governance (“ESG”) requirements
While excluding from the investable universe all issuers that:
- based on sector screening, are exposed to controversial activities, such as tobacco and unconventional weapons
- based on sustainability analysis, have received an insufficient ESG rating (F)
The alignment with environmental or social characteristics is assessed through ECPI/Confluence’s ESG Rating Methodology, which through a rigorous and disciplined research process based on public issuer information, specific data providers, and media sources, allows the translation of mostly qualitative information into quantitative indicators, thus assigning a score and rating to each issuer. The index is calculated daily and its daily return is represented by the average of the daily returns of the underlying indices. The reference benchmark is constantly aligned with the environmental and social characteristics promoted by the Fund through the periodic rebalancing activity of the underlying indices (quarterly for the equity component and monthly for the bond component) which ensures that invested assets are covered by a sustainability analysis and meet minimum environmental, social, and governance requirements. Further information on the Reference Index’s underlyings, its composition, ESG criteria, calculation method, and rules for periodic revision and rebalancing, and the general methodology behind ECPI indices are available at https://www.ecpigroup.com/
