Italian asset management experiences positive growth in net collections for Q1 2023, signalling a promising start to the year.
Italian asset management has shown positive growth in net collections during the first quarter of 2023, according to the recently released Quarterly Report by Assogestioni, the Italian association of fund and asset managers. The report revealed a slight improvement compared to previous months, with estimated net collections at the end of March reaching -€7 billion, surpassing the preliminary figure of -€8.9 billion.
Managed assets rose by nearly €50 billion, reaching €2.257 trillion by March-end, primarily due to a favourable market impact. Alessandro Rota, director of Assogestioni’s research office, highlighted the significance: “The market effect was positive at +2.7%, driven by the strong performance of the equity sector, resulting in an asset growth of around €30 billion.”
Open-end funds accounted for nearly 49% of total assets at €1.1 trillion, providing insights into the retail market with approximately 12 million Italian investors. Rota noted, “Considering only open-end funds, net collection was modestly negative at -€3.7 billion. However, the market effect was positive, reflecting the equity sector’s good performance.”
Equity funds exhibited a positive trend, attracting subscriptions totalling +€2.84 billion in 2022. Bond products rebounded with a collection of €2.96 billion in Q1, following a Q4 2022 decline of -€1.65 billion. However, balanced funds (-€3 billion) and flexible funds (-€5.18 billion) remained in negative territory. Rota commented on renewed interest in bond funds, stating, “Italian investors find value in these products again, as they now offer attractive yields after significant rate increases in 2022.”
Italian funds outperformed foreign funds, collecting +€735 million compared to -€4.4 billion. The report provided an overview of Individual Retirement Plans (PIRs), with outflows of €720 million in Q1. Regular PIRs accounted for €779 million of the outflows, while alternative PIRs saw a positive collection of €58 million.
Rota highlighted the performance of specific fund types, stating, “Article 8 SFDR funds collected €1.26 billion, while Article 9 SFDR funds collected €360 million.”
Portfolio management, comprising over 47% of total assets, experienced a decrease of -€4.29 billion in Q1. This decline was primarily due to €5.77 billion outflows from insurance product management. Institutional outflows of €2 billion, unrelated to pension or insurance mandates, resulted from internal movements within surveyed group companies.
Rota discussed the overall performance of institutional mandates, noting, “The institutional mandate segment showed a negative picture. However, the historically stable pension mandate segment and focused on long-term goals saw a positive growth of €2.4 billion.”
Assogestioni’s Quarterly Report provides insights into the positive growth of net collections in Italian asset management during Q1 2023. The increase in managed assets, driven by a favourable market impact, and the performance of specific fund types reflect the evolving investment landscape in Italy.
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