The Italian job

For the fund management company looking for interesting mandates, Espero’s requests for tender may seem a poor catch; with a capital value of around 78 mln eur this is a small scheme even by Italian standards. But – as ever- the devil is in the detail.
    Espero has the backing of the state, which is both the employer of the public school staff and the promoter of the pension reform, designed to teach Italians in general to save for their pensions.
    The Italian ageing population is coming to terms with the un-sustainability of the generous state pension and is looking around for options to invest for the first time their pension pot. School staff is no exception.
    Mindful of the fact their particular category makes up a large part of the public employee expenses, not least pension expenses, the state has every interest in making a success of Espero, which means getting teachers , care-takers and administrators to join it.
    Given that school staff has already been offered financial incentives to join the fund, it is likely that the potential 1.2 mln membership will slowly but surely be achieved, eventually making Espero one of the most significant pension schemes in the country.
    It may not see a great deal today, but entrepreneurial fund managers could do worse than dropping their business cards at Espero’s office in Rome. Only be prepared: Espero will consider applications just in Italian.

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