ITALY - Italian mutual funds assets are forecast to grow to E190bn by 2006.
That is up from E166bn at the end of June 2002, according to the latest data from Cerulli Associates, a London and Boston asset management research and consulting firm.
The Italian mutual fund market is already the largest in the world, even outstripping the US which has US$130bn under management.
Advisory programs are designed to systematically allocate investors’ assets across a wide range of mutual funds. Services include client profiling, account monitoring, and portfolio rebalancing. An asset-based fee is usually charged instead of a commission.
The growth of advisory programs has been central to the development of the retail asset management marketplace in Italy since 1992. Market share of total Italian retail assets has climbed from 4% in 1996 to a high of 34% in June 2002.
Cerulli expects the share of advisory program assets to stabilise at about 30% of the total Italian retail mutual fund market by 2006.
They have also provided a profitable way for international managers to access the Italian marketplace. Advisory programs, as a distribution channel, have increased from 56% in 1999 to 62% in June 2002 for international managers operating in Italy. The bulk of new business over the past year has also come mainly from advisory programs, representing over 65% of net new inflows.
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