The wealth management market - Italy (2024)

1.2 Global market analysis

The global market value of assets under management shows steady growth over the period ****-****, rising from $***.** trillion in **** to $***.** trillion in ****. This represents an overall increase of **.* percent over five years at a compound annual growth rate (***) of *.** percent. Global market value of assets under management World, ****-****, in US$ trillion Pwc

The value of the global assets under management market grew significantly from **** to ****, from US$** trillion to US$*** trillion, an increase of **.* percent. After a steady expansion between **** and ****, the market contracted slightly in ****, dropping to $*** trillion. However, a strong recovery is observed in ****, with the market reaching *** trillion, indicating rapid resilience and confirming the strength of the sector. U.S. market value of assets under management North America, ****-****, in US$ trillion McKinsey & Company

Between **** and ****, the value of the US market grows from US$**.** trillion to US$***.** trillion, an increase of ***.*% at a CAGR of **.**%. US market value US, ****-****, in US$ trillion ResearchAndMarkets

The European asset management market shows steady growth over the period ****-****, increasing from US$**.** trillion in **** to US$**.** trillion in ****, equivalent to an overall increase of **.*% at a CAGR of *.**%. European market value of assets under management Europe, ****-****, in US$ ...

1.3 The Italian market

In the period between March and July ****, assets under management in Italy increased slightly. It stood at *,*** billion euros in March, falling marginally to *,***.* billion in June (***). However, in July it increased to *.***.* billion, up *.* percent from March. Overall, a positive change of *.*% is observed for the quarter.

Italian assets under management Italy, ****, in millions of € assogestioni

Open-end funds are collective investment vehicles in which investors can enter or exit at any time, without a fixed maturity. Institutional asset managers (***) are portfolios that are custom managed for large clients such as banks, insurance companies, or pension funds. Retail GPs are customized asset management for individual investors or small savers. Finally, closed-end funds are investment funds with a set duration, accessible to a limited number of investors, where the principal remains locked in until the fund matures. As of June ****, the asset management market in Italy is dominated by open-end funds, which account for ** percent of the total. Institutional asset management follows with ** percent, highlighting the significant weight of institutional investments. Retail GPs cover only * percent, a sign of lower participation by small savers. Finally, closed-end funds make up just * percent, confirming their more specialized and less widespread nature than other instruments. Assets ...

1.4 Inflation suffered by the sector

The asset management industry in Italy has been under considerable pressure due to high inflation in ****, with consequences that have forced asset managers to rethink their strategies to protect client portfolios and maintain adequate returns. Inflation in Italy, which has reached *.* percent, has eroded the real value of yields, especially for bonds, making it difficult to protect investors' capital. Aggressive decisions by central banks, such as the ECB, to curb inflation have raised interest rates, causing losses on many assets and increasing volatility in financial markets. To cope with this scenario, asset managers have adopted various strategies. A Schroders survey revealed that ** percent of global investors had to adjust their strategies, increasing their appetite for risk, especially among younger investors, although a more cautious approach is observed in Italy and Germany. Investors have focused on assets such as real estate, electric vehicles, and sustainability-related investments to try to generate higher returns and reduce exposure to market volatility. In ****, the sector saw a significant increase in allocations to short-term products and cash to protect capital. According to a GlobalData study, nearly ** percent of managers have increased exposure to liquid investments, while ** percent have strengthened exposure to alternative assets to diversify risk. In ...

2.1 Overview of demand

In ****, the overall average value of investment in Italy is ** thousand euros. Investments in Italian funds have a lower average value of ** thousand euros, while those in foreign funds distributed with concentration reach ** thousand euros. Cross-border funds record the highest average value at ** thousand euros. These data indicate that investors tend to allocate higher amounts in foreign funds, particularly cross-border funds.

Overall average investment value Italy, ****, in thousands of € assogestioni

In ****, Boomers represent the majority of fund subscribers in Italy, with ** percent, followed by Generation X at ** percent. The Silent Generation contributes **%, while Millennials cover **%. Generation Z plays a marginal role with only *%, and the Greatest Generation is virtually absent. These data show that participation in the investment market is dominated by older generations, with a still limited presence of younger generations, such as Millennials and Gen Z.

Age breakdowns of subscribers Italy, ****, in % assogestioni

In ****, the average investment varies significantly by the age of the subscribers. The Greatest Generation has the highest average investment of ** thousand euros, followed by the Silent Generation with ** thousand euros and the Boomers with ** thousand euros. Generation X invests an average of ** thousand euros, while Millennials and Generation Z have lower values, ** and ** thousand euros, ...

2.2 Geographical distribution of demand

The geographical distribution of subscribers in Italy shows a strong concentration in the Northwest, accounting for ** percent of the total. This is followed by the Northeast with ** percent and the Center with ** percent. The regions of the South and Islands show significantly lower percentages, at ** percent and * percent, respectively. These figures indicate a clear predominance of Northern Italy, which together covers ** percent of the total, while the South and Islands collectively collect only ** percent.

Data on the incidence of the number of subscribers on the resident population show a clear prevalence of the northern and central Italian regions. Emilia-Romagna records the highest value with **.* percent, followed by Lombardy (***), showing a significant gap with the northern regions, with nearly one-third of the population involved in the leading regions versus less than ** percent in the southern regions.

Data on the average investment per residence in Italy show a clear difference between macro-areas. The Northwest leads with an average investment of **,*** euros, followed by the Northeast with **,*** euros and the Center with **,*** euros. The regions of the South and Islands record the lowest values at **,*** euros each. This highlights an economic gap between the North and South, with the Northwest exceeding the average investment ...

2.3 Demand drivers

Data on underwriters by gender in Italy in **** show a slight prevalence of men, accounting for ** percent of the total, while women make up ** percent.

Underwriters by gender Italy, ****, in % assogestioni

The breakdown of total investment by gender in Italy in **** shows that men hold ** percent of investments, while women make up ** percent. This confirms a similar trend to that observed in the distribution of underwriters, with more male economic participation. Breakdown of total investment by gender Italy, ****, in % assogestioni

Men record an average investment of **,*** euros, while women stop at **,*** euros. Although the difference is only *,*** euros, it still represents a disparity of *.* percent in favor of men. Average investment by gender Italy, ****, in thousands of € assogestioni

2.4 Trends in demand for managed assets

Trends in online searches for Italian managed assets between September **** and September **** show an overall growth of ** percent, with the index rising from **.* to **.*. After a decline between September and December **** (***). This shows increasing interest, especially in the last year, with some seasonal declines, such as in August **** and ****.

The numbers represent search interest relative to the highest point on the graph in relation to the region and period shown. A value of *** indicates the highest frequency of search for the term; ** indicates half as many searches. A score of *, on the other hand, indicates that insufficient data were found for the term.

Trends in online searches for managed assets Italy, ****-****, index Google Trends, Businesscoot elaboration

The geographical distribution of online searches for managed assets in Italy shows a strong concentration in Lombardy, which records the highest value of ***, followed by Trentino-Alto Adige with ** and Calabria with **. Southern regions, such as Sicily (***).

2.5 New trends in demand

In the asset management market, several innovative trends are occurring, reflecting changes in client preferences, technological evolution and regulations.

*. Growth in Sustainable Investments (***)

The integration of environmental, social and governance (***) is pushing managers for greater transparency on these issues.

*. Digitization and WealthTech

Technology is revolutionizing the way wealth is managed. The use of digital platforms (***) enables more personalized and automated management. Robo-advisor financial advice is on the rise as clients seek low-cost, easy-access solutions. Technologies such as artificial intelligence and machine learning are being used to improve risk management and optimize investment performance. Blockchain is also emerging to improve transaction transparency and reduce costs.

*. Personalization and Tailored Wealth Management

Clients are increasingly demanding tailored solutions, with portfolios that reflect their personal goals, risk preferences, and time horizons. New technologies are making greater segmentation and customization possible, allowing managers to create unique products for each investor. The trend has also extended to the creation of thematic funds, which follow specific areas of interest such as technology, health, or new energy.

*. Focus on Alternative Assets

Demand for alternative assets, such as private equity, hedge funds, real estate, infrastructure, and investments in emerging sectors (***), is increasing. Investors are looking for ...

3.1 Market structure and dynamics

Between **** and ****, the number of firms active in mutual fund and pension fund management in Italy decreased by ** percent, from *** to ***. After a steady decrease until ****, with a **.* percent decline from ****, there is a recovery in **** and a further increase in ****, with an overall increase of ** percent from **** to ****.

Number of firms active in mutual fund and pension fund management [***] Italy, ****-****, in number Istat

In ****, the majority of enterprises active in mutual fund and pension fund management in Italy are joint stock companies or limited partnerships, accounting for **.**% of the total. Limited liability companies make up *.** percent, while limited partnerships are only *.** percent. Cooperatives, excluding social cooperatives, are marginal with *.**%. Finally, **.**% of enterprises fall under other legal forms. Legal form of firms active in mutual fund and pension fund management Italy, ****, in % Istat

Between **** and ****, the number of people working in mutual fund and pension fund management in Italy increased by **.* percent, from *,*** to *,***. After a significant increase between **** and **** (***), the number of employees remained stable until ****. A more pronounced growth is observed from **** onward, with an increase of *.*% between **** and ****. Number of employees working in mutual fund and pension fund management [***] Italy, ****-****, in number Istat

3.2 Value chain

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This asset management value chain systematically describes the path an asset manager follows to offer customized financial solutions to clients. it consists of several stages, each of which plays a crucial role in building a solid, tailored relationship with the client.

The first phase, Onboarding, is the beginning of the process, where the manager welcomes the client and verifies his or her identity through procedures such as Know Your Customer (***) are also implemented at this stage. Once the relationship is established, it moves to the Data Collection phase, where the manager aggregates all of the client's financial and personal information. This includes collecting account and asset information(***), as well as the client's family situation. This step is critical to fully understanding the financial environment in which the client operates. With the data in hand, the manager proceeds to the Profile Construction phase, where financial profiles are created that reflect the client's specific needs and characteristics. Financial goals are defined and the client's risk tolerance, i.e., his or her ability to accept potential losses, is assessed, as well as his or her ability to bear risk in financial terms. In addition, the client's financial future is analyzed to ensure that investments ...

3.3 Distribution channels

In ****, total investment in Italy shows a strong prevalence of the banking channel for domestic investments, with ** percent of resources distributed through banks. For foreign concentrated and cross-border channels, the role of banks is less dominant, accounting for ** percent and ** percent, respectively. In contrast, financial advisors play a much more significant role in foreign channels, accounting for ** percent in concentrated and ** percent in cross-border distributed investments, while in Italy their share is limited to * percent.

Total investment by distribution channels Italy, ****, in % assogestioni

3.4 The main players in the market

The leading companies in Italy in the market are as follows:

Axa Investment Managers: It is a global asset management company managing over €*** billion in assets as of ****. It offers a wide range of investment strategies, including bonds, equities, multi-asset, and alternative investments. It is distinguished by a strong commitment to sustainable and responsible investing: about €*** billion of its assets are integrated with ESG (***) criteria, in line with the company's mission to contribute to global progress through investments that have positive impacts as well as financial returns.

Nordea Investment Funds: Part of the largest asset management companies in Northern Europe, with a portfolio of more than *** billion euros under management. Part of the Nordea Group, NAM offers diversified investment solutions with a particular focus on sustainable and responsible investment strategies, an element that has been deeply rooted in its corporate philosophy for more than ** years. The company operates globally, serving clients in Europe, the Americas and Asia, and works with a wide network of distributors, including banks, asset managers, independent financial advisors and insurance companies.

Flossbach Von Storch: Founded in **** by Bert Flossbach and Kurt von Storch, today it manages more than ** billion euros in assets, offering investment solutions primarily geared ...

4.1 Type of the offer

Asset management offers a wide range of financial solutions designed to meet clients' diverse investment and asset protection needs. Options vary according to the client's level of involvement and goals, with strategies ranging from discretionary and non-discretionary management to more specialized solutions such as ESG, thematic or customized management, tailored to individual preferences and priorities.

Wealth management is a field that offers a wide range of customized financial services designed for investors with different wealth and financial needs. The table below illustrates the main types of services valued by Italian individual investors, each with a specific focus.

4.2 Market prices

The cost of managing one's assets in a wealth management can vary depending on several factors, such as the bank, the type of management, and the portfolio chosen.

4.3 New trends in supply

According to a study conducted by Deloitte on the disruptions that are shaping the asset management market, the following table introduces the top ** factors and explains how they will impact the industry under analysis.

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5.1 Regulatory framework

Asset management in Italy is governed by a complex set of national and European laws, all aimed at ensuring transparency, investor protection and financial market stability. The basis of this system is represented by the Testo Unico della Finanza (***), namely the Legislative Decree **/****, which is the regulatory foundation for all financial activities in Italy. The TUF establishes precise rules for those who offer asset management services, imposing transparency requirements and the obligation to provide clients with clear information about the risks and costs associated with investments.

Supervising the application of these rules are the Bank of Italy and Consob (***) and investment firms are financially stable, while Consob is responsible for protecting investors by ensuring that all information provided is correct, complete, and transparent. This dual system of supervision ensures accurate and constant control over financial market operations.

The Italian regulatory environment is also strongly influenced by European regulations, which have been transposed into the national legal system. Among these, the MiFID II Directive (***) has a crucial impact on the regulation of asset management services, imposing stringent standards of transparency, conflict of interest management, and investment suitability. Firms are required to carefully assess the risk profile of their clients before proposing any ...

6.1 Market segmentation

• Morgan Stanley Investment Management (MSIM)
• J.P. Morgan Asset Management
• Goldman Sachs Asset Management (GSAM)
• Axa Investment Managers Italia
• Nordea Investment Funds
• Flossbach Von Storch
• Mfs Investment Management
• Ostrum Asset Management
• Bny Mellon Fund Management
• Schroder Investment Management