Fondo Quadri e Capi Fiat, Turin, Italy-based Fiats 38 billion lire ($21 million) pension fund for middle management employees, made its first appointment of outside managers. Morgan Stanley Dean Witter and Banca di Romas asset management arm, Romagest, will jointly manage the fund. Each will manage a 19 billion lire portfolio with 40% invested in Euro-zone fixed income and the balance in a combination of global bonds and equities. The managers are currently preparing asset management studies and expect to begin managing the portfolios in October, said Roberto Vedovotto, executive director for Morgan Stanley. The mandate represents Morgan Stanleys first foray into the Italian pension fund market.