Previmoda appoints global custodian

MandateWire said the change followed a conflict of interest between the previous custodian and Comparto Garantito manager Eurizon Vita. Having previously indicated it would probably exchange the manager, the fund has now opted to stay with Eurizon.

Before the change, the fund used Monte Paschi di Siena as a custodian bank, which was expected to sell its custody business to Eurizon's mother firm Intesa Sanpaolo. The deal went ahead in May last year.

Fabiana Ruttigliano, who is responsible for asset managers at the fund, said it was easier to exchange the custodian than the manager, and added that the fact that Eurizon had been appointed not very long ago and performed well was another reason for keeping the firm.

Eurizon managed to bring in a net 4.47% during last year despite crashing markets. In a note to its members the scheme said: "During 2008, in view of the market developments, the manager has almost eliminated the equity component." The Comparto Garantito generally has a low equity stake, targeting 95% eurozone government bonds and 5% equities.