On December 20, 2024, the new investment strategy for Pensions Caixa 2, F.P. was approved, effective from January 1, 2025. This strategy was agreed upon by the Board of Trustees, VidaCaixa as the Managing Entity, and WTW as the investment advisor. The 2025 strategy adapts to an evolving economic environment, focusing on improving the expected return while managing portfolio risks.
The proposed changes aim to reflect the current reality of the portfolio and maximize the chances of achieving the investment objective. The expected return of the proposal over 5 years is 5.8%, which aligns with the investment target of Euribor + 3.5%. The strategy also includes protective elements, such as fixed income and diversifiers, which could mitigate risks in adverse scenarios. While the expected volatility increases with the proposed strategy, the same level of efficiency (risk-adjusted return) is maintained.
To optimize performance and adjust to the market reality, several key changes have been implemented in the asset allocation. The main focuses of the strategy for 2025 are as follows:
- Increase in Equity Exposure: The risk profile of the strategy has been increased through a higher allocation to equities. This change aims to differentiate the pension fund from more conservative funds, such as employment funds, and maximize the opportunities to achieve the established return objectives.
- Incorporation of REITs (Listed Real Estate): Exposure to REITs has been included as an alternative to reflect the behaviour of Private Markets. These assets will balance the allocation to this less liquid category while continuing to diversify the investment strategy.
- Adjustments in Fixed Income: The weight of traditional fixed income has been reduced, with a greater focus on public fixed income, especially in Europe. Public inflation-linked fixed income in the U.S. has been excluded due to its lower efficiency in the current economic context. Additionally, the proportion of private fixed income assets has been reduced, given their lower risk-adjusted return in the present economic environment.
- Redistribution of the Alternative Credit Bucket: The proportion of loans has been increased to improve the efficiency of the credit strategy.
- Reduction of Exposure to Private Markets: The strategic weight of Private Markets has been adjusted to more accurately reflect its real weight in the portfolio.