Fund managers end the half-year with 1.3 billion

Net inflows into PIRs continue to remain in positive territory. In June, net inflows reached €222 million, bringing the total for the first half of the year to around €1.3 billion. This result was driven primarily by the success of the new bond-based PIRs, alongside growing interest in balanced funds, which are attracting savers seeking a more gradual exposure to the markets without forgoing the tax benefits provided for under the legislation.

Fund inflows by company confirm this trend. In the first half of the year, Mediolanum took the lead with 398.9 million, followed by Eurizon with 374.9 million, Bcc Risparmio e Previdenza with 330.6 million and Arca with 139.3 million. It is primarily the groups that have expanded their range of bond-based PIRs or lower-volatility solutions that have captured this new demand; however, whilst some fund managers are benefiting from the success of these new products, others continue to experience outflows, particularly in traditional equity funds.

And it is precisely here that one of the market’s main contradictions becomes apparent. Whilst investment inflows are currently concentrated in bond funds and, to an increasing extent, in balanced funds, it is equity-based PIRs that, in most cases, show the best performance over a five-year horizon – the timeframe that best reflects the investment rationale behind these instruments. This suggests that investing in corporate equity continues to reward those who maintain a long-term perspective, even if it struggles to attract new capital in the short term.

Another point to consider concerns the composition of portfolios. PIRs were introduced to encourage the channelling of private savings towards Italian small and medium-sized enterprises, but today only a small proportion of assets is actually invested in this segment. Changes in the regulatory framework and the expansion of the investable universe have gradually shifted the focus of portfolios towards larger companies and, more recently, towards fixed-income instruments.

The steady growth in inflows is undoubtedly a positive sign for the individual savings plan system; however, the question remains as to whether it is capable of achieving its original objective. Whilst inflows continue to be concentrated mainly in bond funds (185 million), largely invested in issues by major banks, and in balanced funds (41 million), and equity funds continue to see outflows despite having delivered the best results over the medium to long term, there is a risk that IRPs will increasingly become an efficient tax vehicle and less and less a tool capable of channelling resources towards the capital of Italian small and medium-sized enterprises. A change of perspective is needed.