The PIRs risk remaining just a distant memory. After the subscription boom recorded in 2017 and 2018 by 72 Pir Compliant funds, with 15 billion euros raised (10,9 in 2017, 3,95 in 2018), 2019 completely paralyzed the market. Waiting for the first new rules wanted by the Government, then once they arrive, with the numerous doubts deriving from the newborn legislation.
The result is that while savings plans struggle to recover the lost ground and above all to attract savers, PIR compliant ETFs face premature liquidation. It reveals the Sun 24 Hours, according to which 3 of the 6 PIR Compliant ETFs on the Borsa Italiana website have already been closed. These are the Invesco Italian Pir Multi-Asset Portofolio ETF, which was liquidated last May 13, after losing 3,34% in 16 months, and the Lyxor Italia Bond Pir ETF, which closed two weeks ago with a red of 1,55 %. In the coming days, the ETF Amundi Ftse Italia Pir will be liquidated.
And the tax rebates that customers would have benefited from 5 years after signing up? In all three cases, explains the Sun 24 Hours, the closing “has resulted in the subscribers liquidating the quota at the last nav calculated by the issuer”.
At the basis of the death of the ETF PIR there would be the new legislation imposed by the Government through the latest budget law. In fact, we recall that the new rules oblige investors who decide to bet on PIRs to allocate part of their money to AIM and Venture Capital. The legislation applies only to new funds, for those subscribed before 2019.
In detail, 70% of the overall value of the PIRs mentioned above must be invested, 5% in financial instruments issued by eligible SMEs and traded on multilateral trading systems and at least 5% in venture capital. SMEs must not be listed on a regulated market and must not have received financial resources for an amount exceeding 15 million. From the point of view of the structure, these are companies with up to 250 employees, with a maximum turnover of 50 million or, alternatively, a balance sheet below 43 million.
