State Street Corp. and Mediolanum SpA, an Italian insurance company, have set up a joint venture to manage and administer pension funds in Italy.
The venture is one in a series of deals that State Street has entered to expand its international operations. This month the Boston-based bank announced similar arrangements with banks and investment companies in China and South Africa.
The new joint venture, which will be known as Mediolanum State Street, hopes to command 5% to 7% of the Italian pension fund market. This year Italy approved legislation authorizing the creation of large-scale pension funds serving individual industrial and corporate sectors.
Mediolanum announced that the joint venture has put in a bid to manage the pension fund for employees in the Italian chemical industry and will submit similar bids for other pension funds.