Fondazione Enasarco, the €8.8bn Italian pension fund for sales representatives, has boosted investments in Italian banking sector, considered by the scheme to be one of the main, strategic sectors of interest, it said in its financial statement for 2023. 

Last year, the scheme increased its equity capital holding in Banca Popolare di Milano (BPM) to 3%, through a reverse accelerated bookbuilding, with a further €67m invested. This bumped up the holding from 1.9% of shares bought in 2022 and worth €102m.

Enarsco also bought shares of Intesa San Paolo worth about €30m, to implement an internal decision making clear that the banking sector was “one of the main sectors of interest in light of current market conditions,” the scheme added in the statement.

Italian banks have experienced what Deloitte has called a “discernible trend of general growth” during 2020-2023, with profitability during that period reaching €28.3bn in 2023, a notable rise compared to previous years.

This was the main driver of growth (+29%) in the FTSE Mib Index, the main benchmark for the Italian equity markets, outperforming the S&P 500 index and the average European stock markets (Euro Stoxx 50 index at +19%) in 2023, according to Deloitte. 

In its March report the consultancy said that despite significant growth for Italian banking stock prices in 2023, market valuations did not fully align with banks’ profitability growth, suggesting caution among investors.

“The key challenge was to improve the market valuation and addressing this required the identification and implementation of strategies,” it said.

For pension funds like Inarcassa, the pension fund for self-employed engineers and architects in Italy, investments in domestic banks have been fruitful. Earlier this year it reported taking profit on Monte Paschi’s stock after a market increase in prices compared to the price of reference of the 2022 capital increase.

Enpam, Italy’s largest pension scheme, Fondenergia, Fondoposte, Inarcassa, and Cassa Forense have bought shares in Bank of Italy. 

Elsewhere in Italy, some of the country’s pension funds plan to create a consortium to invest in the equity of domestic small and medium-sized enterprises. 

Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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