Italian fund sales more than double

Asset managers are ramping up their sales efforts in recession-plagued Italy amid a surge in mutual fund sales in the Mediterranean country despite its glum economic backdrop.

Almost 60 per cent of international asset managers plan to increase their sales efforts in Italy this year, up from just 37 per cent in 2014, according to Cerulli Associates, an asset management consultancy, which surveyed 35 houses.

Net fund sales in Italy more than doubled to €133.8bn last year, from €62.5bn in 2013, according to Assogestioni, the Italian asset management association.

Sergio Albarelli, senior director for southern Europe and Benelux at Franklin Templeton, which opened offices in Rome, Florence and Padua last year, said the Italian funds market was undergoing "a time of great change".

"Italian financial advisers have become much more responsive and flexible in addressing their clients' needs. Italian investors are increasingly looking for more sophisticated products in the current low-yield environment, such as multi-asset funds and target return vehicles," said Mr Albarelli.

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Lorenzo Alfieri, head of Italian funds at JPMorgan Asset Management, said Italy's property market had been affected both by changes in government policy and higher taxes, which had hit the popularity of real estate in particular.

"Italian clients are no longer interested in investing in cash or government bonds or real estate. Sales staff are also pushing investors into asset management products where advisory services can provide fresh profit opportunities," said Mr Alfieri, adding that it remained challenging to persuade clients to move away from bonds entirely.

Asset managers are also increasingly targeting the French and Spanish markets, Cerulli said, with 43 per cent of those surveyed saying they would increase their sales efforts in France this year, up from 22.5 per cent in 2014, and 27 per cent targeting Spain in 2015, up from 18.5 per cent last year.

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