Asset Management Opportunities with Fondo Pensione del Monte dei Paschi di Siena
Fondo Pensione del Monte dei Paschi di Siena (MPS), the pension fund catering to employees of the esteemed Italian bank, is on the lookout for asset managers to oversee its defined benefit (DB) sub-fund, particularly focusing on investments in Italian private equity.
Investment Focus and Guidelines
The pension fund aims to allocate between €70 million and €80 million towards private equity alternative investment funds (AIFs), with a significant 70% of this investment directed toward Italian assets.
Within this private equity mandate, it is important to note that venture capital investments are limited to a maximum of 20% of total assets. Additionally, co-investments are capped at 30% of total assets, and investments in debt or credit instruments must not exceed 10% of the fund.
Application Deadlines
Asset managers interested in participating must submit their applications by 9 January 2025, as specified in the fund’s tender notice.
Opportunities within the DB Sub-Fund
The pension fund’s DB sub-fund, which boasts a total of €92.1 million, is divided into nine distinct options. Among these, there is an €80 million cash-driven investment (CDI) opportunity that requires a liquidity matching mandate.
For this mandate, the chosen asset manager will focus on investing in liquid bond instruments and Undertakings for the Collective Investment in Transferable Securities (UCITS). The use of derivatives and repurchase agreements will be permitted, adhering to the legal limitations in place.
Strategic Asset Management
The selected asset manager will need to implement a strategy that effectively meets the liquidity requirements of the sub-fund while ensuring the preservation of the portfolio’s asset value.
Applications for the DB sub-fund mandate are due by 8 January 2025.
