Italian fund industry starts 2020 with €4.7bn outflows

On the 02/26/20 at 3:44PM


Adrien Paredes-Vanheule

Despite outflows, assets under management of the Italian fund industry have hit a new record high at the end of January 2020.

Records succeed one another in the Italian asset management industry month after month since it reached a new record high to €2.32trn in assets under management at the end of January, erasing the record of €2.30trn set in December 2019. Data from Italian asset management association Assogestioni, the industry's assets under management were divided between collective management (€1.13trn) and portfolio management (€1.19trn) as of 30 January 2020.

Nonetheless, some €4.7bn net outflows were recorded for the first month of the year in Italy. Italian investors withdrew €2.14bn and €2.53bn in collective management and portfolio management respectively throughout January. They pulled a net €2.31bn out of open-ended funds. Flexible funds suffered the most with net redemptions of €2.02bn while money market and equity products had outflows of €694m and €116m respectively. Conversely, balanced and fixed income funds recorded net inflows in January, €649bn for the former and €8bn for the latter. Also closed-end funds boarded €170m in net new cash from Italian investors last month.

Strong outflows of €2.8bn were observed in the institutional portfolio management segment. Assogestioni said portfolio management data "is affected in particular by the transfer by the Credem group of an intragroup management mandate for unit-linked insurance policies from Euromobiliare AM Sgr to Credemvita," according to a note sent by local financial group Credem to the association.

“The transaction involves the exit from the perimeter of the Assogestioni survey of approximately €3bn, recorded as a decrease in assets under management and as negative net deposits. The phenomenon is not connected to customer divestments: the aforementioned assets remain within the Credem Group,", the note specified.

Lastly, retail fund sales were positive with €267m drawn from Italian retail investors in January.

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