Italy’s doctors’ pension fund Enpam is preparing to invest up to €120m in domestic small and mid-cap equities via the state-backed Fondo Nazionale Strategico Indiretto (FNSI).
The €30bn scheme has launched a tender to select an Undertakings for Collective Investment in Transferable Securities (UCITS) vehicle to deploy the allocation into Italian small and mid-caps.
According to tender documents, the vehicle must comply with the regulatory framework governing the National Strategic Fund (FNSI), which supports market-based operations of segregated assets managed by state-owned investment bank Cassa Depositi e Prestiti (CDP).
Interested asset managers have 30 days to submit proposals.
Enpam said it aims to complete the allocation to domestic equities over the coming months, in line with its governance procedures.
The fund views the FNSI as a tool to strengthen Italy’s capital markets and support the growth of small and medium-sized enterprises, president Alberto Oliveti told IPE.
The FNSI, a fund-of-funds fully backed by Italy’s Ministry of the Economy and Finance, began operations in February. It is designed to attract capital from first pillar pension funds (Casse di Previdenza) such as Enpam, as well as second pillar industry-wide schemes (Fondi Pensione Negoziali).
Other pension funds are also engaging with the initiative. The pension fund for chartered accountants Cassa dei Dottori Commercialisti is seeking an asset manager to invest up to €100m in listed Italian SMEs, including through the National Strategic Fund.
Meanwhile, Cassa Forense, the €19.5bn scheme for lawyers, and Enpaia, the €2.15bn pension fund for agricultural workers, have committed to invest in funds under the FNSI project, according to newspaper La Repubblica.
Both domestic and international asset managers can participate. So far, Italy’s securities regulator Consob has approved funds from Algebris, Amundi, Anima, Arca, Equita, Eurizon, Generali and Miria, the asset manager of Enasarco, the €9.3bn pension fund for sales representatives.
The first fundraising round closes in June, although managers will have additional time to complete capital raising.
According to investment bank Intermonte, the investable universe for the strategy includes 297 companies, with a combined market capitalisation of €140.3bn and free float of nearly €56bn.
Italian small- and mid-cap stocks have recently underperformed due to macroeconomic uncertainty linked to the conflict in the Middle East, a broader risk-off investor stance and renewed inflation concerns, said Andrea Randone, head of mid-small cap research at Intermonte.
He added that liquidity conditions in the segment are already improving and are expected to strengthen further with the rollout of the National Strategic Fund.
