Bluerating

Borsa Italiana expects a number of “debut appearances” by the end of the season. Three issuers so far.

A hot summer for the EFTplus market

At the end of June a total of 37 compartments from three management firms were under negotiation, of which 14 based in Italy and 23 in Luxembourg

Edited by Diana Bin

Borsa Italiana is analysing “a large number of procedures” submitted by companies that want to list their Italian and foreign funds, with several debut appearances expected by the end of the summer. This is the comment by Silvia Rosoni, listings director for Borsa Italiana’s EFTplus market. At the time of writing, 37 compartments of three asset management companies are under negotiation, of which 14 based in Italy (those of AcomeA SGR) and 23 in Luxembourg (11 for Pharus SICAV and 12 for New Millennium SICAV). “The initial balance sheet is very positive”, commented Bosoni.

“The ETFplus market segment dedicated to open-ended funds has seen three new issuers since it opened last December. And we continue to receive numerous expressions of interest from both Italian and foreign investment houses, some of which have already firmed up into applications for listing”. And we’re not talking just about small investment boutiques. “We’ve noticed that some medium-large operators have also wanted to analyse this new model in greater depth and their view is favourable”, continued Bosoni. “Some of those interested are focusing on the possibility of getting closer to retail investors, while others will focus exclusively on institutional investors.

Here at the Borsa we’ve created a model that is suitable for issuers of any size, and which will enable them to make their funds accessible to all types of investor, quickly and efficiently and with an eye to keeping costs down. In addition, with listing, buying and selling funds in the Borsa benefits from the transparency, efficiency and protection that are typical of regulated markets, in compliance with the European regulations”.

According to the information that BLUERATING holds, the following firms have already applied for, or have expressed an interest in, listing: Alessia SICAV, Diaman SICAV, Compass AM, Selectra Capital Management and Anthilia Capital Partners, and also Nextam Partners, Arc AM, Zenit SGR and 8a+ Investimenti SGR. The last-named is waiting for authorisation from the Commission de Surveillance du Secteur Financier (CSSF) for the three funds of the 8a+ SICAV based in Luxembourg, and drawing up its operational model with the depository for two Italian funds managed by 8a+ Investimenti SGR.

But other names are beginning to appear too, albeit without expecting to be included in the list of first movers. Banor SIM, for example, which had a discussion with Borsa Italiana to understand the advantages and which feels that, if the market takes off, it will be impossible to stay outside.
“We’re looking with interest at the listing of funds, we think that’s the future and we’ll certainly be doing it”, said CEO Massimiliano Cagliero.

“This is an alternative and/or additional channel to distribution which, in Italy, is very expensive indeed: I think any rational manager should be interested. I don’t feel, however that it’s advantageous to be the first to move in this market, so we’re in no hurry”.

La Française AM, a medium-sized company which, after a preliminary discussion in the Borsa, is watching from the side lines until the big players make their move, is of the same opinion. “Right now the channel is of interest mainly to small firms that in Italy are unable to access direct distribution agreements with the networks”, said Alex Ricchebuono, the firm’s director for south-eastern Europe. “We’re not that small, but nor are we big enough to be first movers”.

Lastly, Consultinvest is working to set up ad hoc investment funds for listing. “In our view, the possibility of introducing funds to the Borsa isn’t of interest for existing products that are intended for listing”, as CEO Maurizio Vitolo had explained in March. “We’re working, instead, on special products created specifically to be listed and which will use only that channel for placement. We haven’t submitted any application yet, but we’re at an advanced stage of analysis”.
Twitter: @DianaBin2

Original article in Italian language, available here: Bluerating, July 8, 2015.


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