ITALY - As the fortieth contractual pension is launched in Italy, money managers are looking forward to an increasing number of mandates as new funds outsource assets and existing ones become multi-investment strategy vehicles.
Fondoposte, a fund for postal workers which received approval to start operating at the end of July, is the latest occupational pensions scheme to start. It will take contributions from employees of Poste Italiane SpA, the state-owned postal group, and all its subsidiaries.
The fund, which was set up by the the company in partnership with trade unions, will offer a single investment strategy, know as a mono-compartment, to its members for the first three years of its life.
Thereafter, in keeping with the trend amongst all contractual funds it will have diversified investment lines, or multi-compartments, to suit the different needs of its members.
Previambiente, the fund for environmental hygiene workers, is in the process of drawing up a short list of candidates from which it will choose a money manager for a portfolio which is expected to have about e10m of assets by the end of the year. It wants to have 60% of its portfolio managed according to ethical investment strategies.
The short list of six candidates was drawn up on the basis of the best management performance of an international equities portfolio over the last five years. The final selection will be decided according to criteria to be established by the board of the fund.
Byblos, the fund for workers in the paper industries, is at a similar stage of the selection process in its search for three asset managers for a fund forecast to have e41m by the end of this year and e92m by the end of 2006. It is choosing three candidates for each portfolio and the winners will have mandates for a three-year period.
It too will have single investment compartment but, in anticipation of eventually transforming into a multi-compartment fund, it will assign different portfolios to each manager. The first, accounting for about 40% of the assets, will be a bond portfolio. The second, with 25% of the assets, will be a balanced portfolio consisting of 40% equities and 60% bonds. The third more aggressive portflio will have 64% equities and 36% bonds.
At the end of July Fondonergia, the fund for workers in the power industry, announced the appointment of seven managers.
RAS, the Italian insurance company owned by Germany’s Allianz, and SanPaolo IMI will run the conservative portfolio. Pioneer, the fund manager owned by UniCredito Italiano, Duemme, the company owned by Banca Esperia, and Dexia will have the balanced portfolio. ING and Monte dei Paschi di Siena will manage the dynamic portfolio.
The fund, which has 29,924 members and e220m of assets under management will officially transform into a multi-compartment fund in November.
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