Article: Dependency culture; Fund management in Italy.(Italy's captive mutual funds)

Italy could do with truly independent mutual funds

"THE events... allow us to hope that a new important phase of maturity for Italian capitalism has begun," proclaimed a recent note on the website of Assogestioni, Italy's investment-management association. The "events" were not as dramatic as all that. At the annual general meeting of Telecom Italia in May, fund managers had criticised the company's merger with its parent, Olivetti, a heavily indebted telecoms group. But the revolt stopped short of outright opposition to Telecom Italia's management. When foreign shareholders voted against the merger, the fund managers merely abstained.

Still, in Italy ...

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