Established in 1999, Pensions Caixa 21’s assets are managed by insurance group VidaCaixa. The strategic asset allocation is 50% in fixed income securities in OECD countries, with a credit rating within VidaCaixa’s required parameters, and a target duration of three years. The remaining 50% is invested in global equities, mainly in regulated markets. Put options are used to hedge the equity portfolio against losses, an efficient strategy allowing the fund to enjoy the potential upside of a global bull market.

There is a target allocation of 10% for private equity assets, and to reduce the impact of the J-curve, Pensions Caixa 21 has made commitments at a significant discount in the secondary market, achieving a very positive performance. Co-investment funds have been introduced during the past year to provide greater expected returns with lower costs. Higher diversification is also achieved from infrastructure and private debt, which offer inflation-linked income or floating interest rates.

For over 20 years, Pensions Caixa 21 has integrated ESG into its investment decisions. VidaCaixa joined the Principles for Responsible Investment (PRI) in 2009, the first Spanish insurance company to do so. Over the past year, it has improved ESG within its pre-trade analysis processes and monitoring, considering data from different sources. It runs sustainability training courses for steering committee members and employees and actively participates in stewardship initiatives such as engagement and voting.

Since 2016, the *Ahorra+mañana” (“Save more tomorrow”) programme has galvanised voluntary contributions from members. It provides for members whose salary has increased by more than the consumer price index (CPI) - mostly young people – to make a voluntary contribution of half the increase over the CPI. The percentage of individuals taking part has doubled from under 25% to over 50% of participants.