Italian pension funds in focus as strategic national fund seeks capital boost

Italian pension funds are emerging as key targets for asset managers looking to deploy capital into the newly established Fondo Nazionale Strategico Indiretto (FNSI), a strategic investment vehicle managed by state-owned investment bank Cassa Depositi e Prestiti (CDP).

Launched in April via a ministerial decree and anchored by the Ministry of Economy and Finance (MEF), the FNSI aims to support small and mid-cap companies listed on Borsa Italiana, Italy’s main stock exchange.

The fund is structured to match institutional and pension fund investments with public capital, creating a public-private partnership framework to bolster Italy’s capital markets.

“Enpam looks with interest at the National Strategic Fund, acknowledging its potential to strengthen the capital market in Italy and support the growth of small and medium-sized enterprises, which are an essential component of our economy,” said Alberto Oliveti, president of Enpam, Italy’s largest pension scheme.

Oliveti emphasised Enpam’s commitment to investing in initiatives aligned with its mission. “We have already invested in similar initiatives, always by selecting the opportunities proposed to us with transparency and rigour,” he added.

The FNSI is part of a broader strategy to address the structural limitations of Italy’s capital markets. Acting as a fund of funds, it will operate through the MEF’s underwriting of closed-ended Alternative Investment Funds (AIFs) with an investment horizon of 5–7 years, targeting domestic small and medium-sized enterprises (SMEs), according to Mauro Baragiola, who oversees the fund at CDP.

Baragiola spoke during an event hosted by industry group Assogestioni last month.

The fund aims to raise between €1bn and €1.5bn in capital before engaging with international and large-scale investors.

Institutional investors are seen as strategic partners in the initiative. Speaking at the same event, Federico Freni, undersecretary at the MEF, said that revised investment rules for pension funds could unlock their capital “firepower”.

Asset managers argue that the vehicle’s structure – featuring closed-ended funds, dividend distribution and defined fund lifespans – aligns well with the needs of pension funds and other long-term investors.

Eurizon, one of Italy’s leading asset managers, plans to engage its institutional clients in the initiative.

“These companies are all easily investable, and they all can be included in a fund. We have problems when we look at small caps. We have set as threshold €40m free float daily to invest 10% of the portfolio,” said Alessandro Solina, Eurizon’s CIO.

Eurizon has developed a portfolio of 150 listed SMEs, including 60 constituents of the FTSE Mid Cap Index, as a potential investment universe for the fund.

Amundi is adopting a similar approach, according to Francesco Sandrini, the firm’s CIO. He said the asset manager plans to mobilise pension funds with a long-term view, alongside Amundi’s own open pension fund and affiliated insurance companies.

“This is a very important strategic investment; this market segment needs €20bn for the environment and digital transition. The current geopolitical situation accelerates discussions [to invest in this project],” Sandrini said.

Generali Investments is also conducting due diligence on the SME segment. CIO Filippo Casagrande said the firm is performing bottom-up research to support equity allocations in unit-linked plans on behalf of clients.

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