Nothing new from the Pir source. In April too, individual savings plans confirmed a positive funding trend with a balance of €125 million, bringing the total since the start of the year to €925 million. But as is now customary, the most significant figure is that of bond funds, which collected 83 million euro in April, taking the lion’s share of flows. Probably in a context of continuing uncertainty in the financial markets, investors tend to favour instruments perceived as more stable, with more predictable returns and limited volatility.
The other categories: weaker demand
On the side of the other types, the balanced funds defended themselves fairly well with proceeds of 33 million, the flexible funds collected 13 million, while for equities the accounts are in the red by just under 4 million. This result shows not only a lower appetite for risk on the part of subscribers, but also a certain caution on the growth prospects of Italian small and mid caps, which represent (or should represent) the heart of the Pir universe.
The balance since the beginning of the year
The overall figure since the beginning of the year, however, confirms that PIRs remain a relevant instrument in the asset management industry, even if the dynamics of inflows are not balanced between equities and bonds. And here emerges an interesting aspect to analyse. Given that PIRs were conceived to channel household savings mainly towards unlisted or less capitalised SMEs, the question arises as to how much bond plans really contribute to financing the real economy. The answer is multifaceted. On the one hand, bond funds can also support it if they invest in corporate issues of Italian companies, especially mid-caps or non-financial companies that finance themselves on the debt market. On the other hand, however, compared to the equity component, the structural effect is more limited. Debt finances current activity or specific investments, but does not directly strengthen the capitalisation of companies as equity does. Moreover, a portion of bond portfolios can still be invested in securities that are less closely linked to domestic SMEs, reducing the direct impact on the Italian real economy.
The Outlook
The picture that emerges is therefore one of a Pir market that is growing, but moving towards an increasingly conservative profile. This may favour inflows in the short term, but raises questions about the effectiveness of the instrument in supporting the more dynamic component of the production system. In essence, bonds are playing a key role in keeping savings plan funding alive. However, if this prevalence were to consolidate further, the risk is that the instrument would lose part of its original vocation: that of being a privileged channel of investment in the equity of the Italian real economy.