There is a month and a half left until the halfway point, but it can be anticipated without fear of contradiction that 2021 will be remembered as the year of records for managed savings. More for managers than for customers, given that, once again, the costs borne by savers turn out to be much higher than those charged by industry in other countries. In the first nine months of the year, the instruments that the top ten asset management companies in our country placed with savers were in fact seen applied on average recurring charges equal to 1,46%, far higher than the 0,96% of top 30 of the Old Continent.
The data, obtained from the periodic report on managed savings promoted by Tosetti Value, the most important Italian family office, certainly does not represent a novelty for insiders, but it is striking because it comes at the height of a very lucky season for this activity, which now in bank balance sheets it is often worth more than the traditional lending activity.
RECORD RESULTS
The October figures arriving in these days confirm the excellent performance achieved in the first nine months when total assets had reached 2.561 billion thanks to a strong acceleration starting from August (the positive balance was over 9 billion, the best August since 2014). Primates that are demolished day after day thanks to the combination of collection (strong growth) and market performance ensured by the good performance of the markets. The Banca Intesa team (Fideuram, Intesa San Paolo Private Banking), for example, closed September with assets under management growing (+9% to 330,9 billion) both thanks to net inflows (+35%) and market performance which contributed another 15,3 billion to the growth in assets.
Meanwhile, the absolute records in Piazza Affari of Banca Generali and Fineco testify to the confidence of the markets for the prospects of the other big names in the market. And the same goes for Azimut and Banca Mediolanum which in October raised funds close to one billion (994 million). For the latter, Intermonte goes so far as to forecast a higher than expected trend in performance fees at the end of 2021, higher than the estimates: "we currently expect 115 million in performance fees in the second half of 2021, we read - but they could be higher than 200 million".
BUT THE CUSTOMER PAYS THE BILL
Too much grace. Faced with certain numbers and in comparison with the neighbours, the legitimate suspicion arises that the savers charged with higher than average costs are paying the bill. But what does the phenomenon depend on? According to Tosetti Value, there would first of all be some structural elements of the sector. In particular, "the relatively small size does not allow them to achieve the necessary economies of scale, which would allow them to effectively expand the offer to passive funds, which by nature are burdened with lower costs, and to be present with investment teams and technology in all geographies and sectors through own resources”.
ETF, THE LOST OPPORTUNITY
Due to the small size compared to the big ones such as BlackRock or Lyxor, the Italian managed system does not participate in the ETF boom, the most dynamic sector with a market that globally in mid-2021 was now worth 9 trillion dollars compared to just one trillion in the 2010. But the Italian players are totally absent from what it actually is
by far the most dynamic area of asset management at the moment. «It is a segment characterized by very strong price competition based on economies of scale, which by now seems to be achieved only by a limited number of global players», notes Tosetti Value. A train that Italy has evidently lost a long time ago.
CURRENT ACCOUNT COMMISSIONS AND NO
However, size is neither the only nor the main reason for the higher costs for savers. The remuneration system of the placement network, often with engagement bonuses for the most productive promoters worthy of the world of football (not only an Italian characteristic, given that BlackRock's best salesman earns much more than Larry Fink), has its weight in terms of subtraction of return on investment.
Furthermore, the instruments available to savers continue to be weighed down by much higher recurring commissions. In general, the "face" cost of the product improperly includes the charges incurred by the investor for the advice received for subscribing to that product. Basically, until now, the placement of the fund has also been paid, a cost the size of which is not known to the subscriber and which weighs on the value of the investment year after year.
Things should change with the entry into force of new rules on performance commissions, defined by ESMA (European Securities and Markets Authorities), the European body where the guardians of the financial markets are represented, such as Consob.
The preference for bonds over stocks completes the picture. A wrong choice, motivated by a misunderstood search for security on the part of customers that the management system has failed to correct in recent years. Even today in Italy, 20,5% of customer portfolios are exposed to the stock markets against 47,6% of the European sample examined by Tosetti Value. The result is that half a percentage point of extra costs on assets that far exceed 2.500 billion.
