Pension provision

The Veterinarians’ Fund diversifies its investments effectively, but remains held back by too many property holdings and too much cash

Enpav achieves a return (5.3%) which exceeds the benchmark (3%)

by Marcello Frisone

1 August 2026

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3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

The market return (5.30 per cent) exceeds the benchmark (3.01 per cent), but the Veterinarians’ Pension Fund’s portfolio has a high proportion of cash, property and European investments. This is the summary of Enpav’s 2025 annual report, which shows an asset allocation that is less bond-oriented than that of other independent pension schemes examined by ‘Plus24’.

GLI INVESTIMENTI

Bonds in the portfolio

As at 31 December 2025, 32.2 per cent of the assets (1.38 billion) were invested in bonds (443 million), 24.1% in shares, 21.7% in property, 13.6% in cash and 8.4% in alternative investments. The financial statements do not disclose the returns on individual asset classes and therefore do not allow for a precise attribution of the 5.30% return.

Investing in shares

The equity component, which is among the highest when compared with other pension funds, shows adequate geographical diversification: 55.4 per cent is invested in North America, 27.5 per cent in Europe, 9.5 per cent in emerging markets and 7.7 per cent in the Pacific region. Italia accounts for 12% of the equity portfolio, thereby limiting dependence on the domestic economy.

Properties

Property accounts for as much as 21.7 per cent of assets, totalling nearly 300 million, one of the highest proportions amongst the pension funds analysed by ‘Plus24’. Property can offer relatively stable income streams and some protection against inflation, but such a high proportion reduces the portfolio’s liquidity and increases exposure to valuation and management risks. Geographical concentration is also marked: 96.6 per cent of the portfolio is invested in Europe (49.2 per cent in Italia).

The organisation’s objectives

Enpav recognises the need to rebalance the property component, which historically accounted for over 90 per cent of the illiquid portfolio: the aim is to reduce its weighting to 16 per cent, whilst simultaneously increasing exposure to private equity, private debt and infrastructure. At the end of 2025, however, the real estate component remained 5.7 per cent above the target. The organisation points out that the period between the approval of the new strategy, which took place in June, and the end of the financial year represents a transitional phase.

Alternative assets

Alternative investments (8.4 per cent of assets) are broken down into private equity (3.6 per cent), private debt (2.2 per cent), infrastructure (1 per cent) and other strategies (1.6 per cent). Here too, there is a clear European dominance, accounting for 86.8 per cent: Italia accounts for 39.8 per cent, whilst North America accounts for 10.8 per cent.

Liquidity

Liquid assets account for 13.6 per cent of total assets, amounting to over 187 million, compared with a strategic target of 3 per cent: the deviation of 10.6 percentage points is the largest across the entire asset allocation. A high proportion may be justified by the transition to the new portfolio and the need to finance future call-offs of illiquid investments. However, if maintained over the long term, it generates a significant opportunity cost.

Geographical distribution

Overall, 74.7 per cent of the portfolio is invested in Europe, with Italia accounting for 31.3 per cent of the total, 18.5 per cent in North America and 4.8 per cent in Asia. Domestic exposure remains significant and is driven primarily by property and alternative investments.

Who is responsible for what

No obvious concentrations are apparent from the list of mutual funds and ETFs: investments are spread across Amundi-Lyxor, State Street, JPMorgan, Anima, Pimco, Pictet and Axa. Some groups are represented across several products, but based on the figures reported, no single manager appears to account for a dominant share of the total assets.

The overall assessment

“The assessment of the fund’s management,” explains Vincenzo Cagnetta, an analyst and independent financial adviser at Studio Enca, “is favourable: the return has outperformed the benchmark, and the portfolio demonstrates good geographical diversification across equities and, in the portion invested via funds and ETFs, managerial diversification as well. The main areas of concern, however, relate to the composition of the assets: the proportion of property remains high, liquidity is well above the strategic target, and there is a geographical concentration on Europe, particularly in the less liquid components. The new asset allocation appears to be heading in the right direction; the assessment in the coming financial years will depend on Enpav’s ability to effectively reduce its real estate and cash holdings, whilst gradually and selectively strengthening the other components of the portfolio.”