Twentieth consecutive positive quarter for the asset management industry. The data from Assogestioni bear witness once again to the state of health of the sector: overall net inflows in the fourth quarter were +17,3 billion euro: a figure down from the 23,3 billion in the third quarter, but which closes a excellent 2017, strengthened by the launch of the Pir.
As emerges from the quarterly map released by Assogestioni, the heritage has in fact reached a new record, rising to 2.089 billion euros from the 2.056 billion with which the three months ended last September. Collective management (+19,9 billion) was the driving force behind inflows, thanks to the +19,5 billion in open-ended funds (from 13,7 billion in the third quarter) to a total of 77,3 billion in 2017.
Closed-end funds ended the quarter at +397 million (from 294 million in the previous year) and the year at +1,4 billion. Portfolio management, on the other hand, closed the last quarter of the year with outflows of 2,6 billion against +9,3 billion in the previous three months, for a total over 12 months of 18,7 billion. The -2,55 billion from insurance product management weighed mainly (from +5,4 billion), with a balance of +2017 billion for the whole of 10,1.
Among open-ended funds, savers' preferences went again to flexibles, which in the quarter achieved net inflows of +7,5 billion (from +5,7 billion) . Still strong interest in bonds (+4,86 billion after 4,2 billion), good attention also paid to balanced (4 billion after 3,5 billion), nor was there a lack of equity appeal (+2,1 billion from +1,5 billion). Over the whole year, net funding rewards bonds with +29,4 billion, ahead of flexible (+21,9 billion) and balanced (+17,7 billion).
Equities are more detached, with an annual balance of +9,2 billion. Money market funds regained their plus sign in the quarter (+945 million after -1,1 billion), but it was not enough to overturn the balance of the year which ends with a negative net inflow of 611 million. As for nationality, Italian-registered funds recorded net inflows of 4,4 billion after 3,9 billion, for a total of 15,8 billion for the year. Foreign funds accelerated to +15 billion from +9,8 billion in the third quarter, to a total of 61,5 billion in the 12 months.
As mentioned, the performance of the Pir, which closed 2017 in acceleration. Again according to Assogestioni's quarterly map, Pir 'compliant' open-ended funds in the fourth quarter recorded net inflows of 3,38 billion euro, an increase compared to the 2,2 billion in the third quarter, which bring inflows since the beginning of the year to 10,9 billion. The assets promoted thus reach 15,8 billion.
The group stands out among the major managers Intesa Sanpaolo with 758 million in the three months to the end of December, after 547 million at the end of September and a total of 2,7 billion over 2017. Mediolanum is also significant, with PIR net inflows based on promoted assets of 518 million in the fourth quarter, after 402 million in the third, with a year-to-date total of 2,1 billion, e Amundi with inflows of 793 million in the fourth quarter (after 382 million) and a total for 2017 of 1,37 billion.
Meanwhile, just yesterday Consob intervened on the question of the cost of open-ended mutual funds. With a "discussion paper", a research document, the supervisory authority for listed companies analyzed management, entry and exit costs in the period 2012-16. The result that emerged is that management costs remained stable with respect to assets, around 1,4%, but the weight on the profits produced, which evidently decreased, jumped from 16% to 51%. As for the expenses borne by subscribers, there was a simultaneous increase in entry costs (from 0,7% to 1,5%) and a decrease in exit costs, which fell to the point of becoming "residual" (0,05 %). The work also shows how a very high share of costs goes to remunerate the distribution activity. In particular, around 70% of commissions paid to asset management companies is absorbed by distribution costs. Here is the Consob document.
