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Italian fund selectors brace yourselves

Though the Italian economy is still on stand-by, shrinking 0.1% in 2014, asset management in the country is booming. International asset managers are therefore planning a marketing offensive in the country, according to a survey conducted by Cerulli.


PA Europe

Net flows into the Italian market doubled in 2014 to €134bn, with all major asset classes except for European government bonds and emerging market equities welcoming substantial net inflows. Italian households are looking for alternatives to savings accounts and Italian government bonds, which have become unattractive due to the record low yields. Real estate, another cornerstone of Italian investors’ investment policy, has also lost much of its appeal due to disappointing returns.

The trend of increased net inflows into asset management has attracted international attention, as foreign asset managers are now stepping up their marketing efforts in the country. A year ago, only 37% of asset managers said they will increase their sales efforts in the country. Now this is figure stands at 60%. Germany is now the country most in the focus of asset management marketeers, surpassing Switzerland: some 68% plan to intensify their marketing efforts there, compared to 65% for the Alpine nation.