Italian Asset Managers Report 47% Year-Over-Year Rise in Net Inflows in 2025

Italy's five listed asset gatherers reported combined net inflows of around 68 billion euros for 2025, up by 46.8% from 46.3 billion euros the previous year. In December alone, combined net inflows totalled 18.2 billion euros, recording a four-fold increase versus the same month of 2024. The rise was largely attributed to Azimut's acquisition of North Square Investments LLC.

The fund management industry is under pressure to protect margins as it grapples with growing technology spending and competition from passive products and other cheaper forms of investment. European asset managers have struggled to consolidate, facing competition from U.S. firms that are gaining a larger share of the continent's savings.

A proposed merger between Italy's Generali and French banking group BPCE collapsed at the end of last year after meeting strong opposition from the Rome government and some key Generali shareholders.

Why the Move Happened

Azimut reported a record 32 billion euros in net inflows for 2025, exceeding its full-year target. The company's CEO attributed the success to its strengthened presence in existing markets, expansion into new ones like Morocco and Saudi Arabia, and the enhancement of its U.S. and Brazilian operations according to the report.

The acquisition of North Square Investments was a significant factor in Azimut's December performance. The U.S.-based platform contributed to the four-fold increase in net inflows for the month.

How Markets Responded

Banca Generali also reported strong inflows, with its CEO noting that the company exceeded its 2025 targets in both qualitative and quantitative terms. The firm has seen a 336% increase in net inflows into more lucrative managed assets compared to December 2024.

The Italian asset management sector is seeing increased competition, with U.S. firms gaining ground in Europe. Prudential Financial's investment arm, PGIM Inc., is reportedly considering selling its loss-making asset management unit in India. The unit, which manages around 266 billion rupees ($3 billion), has seen limited growth and incurred after-tax losses.

What Analysts Are Watching

The success of Azimut and other Italian asset managers is being closely watched by investors and analysts. The firm's ability to maintain high inflows while expanding into new markets and strengthening its global presence is seen as a positive sign.

However, the broader industry faces challenges, including margin pressures and the need for technological investment. European firms are also under pressure to consolidate, given the competitive landscape dominated by U.S. firms.

The market will continue to monitor the performance of Italian asset managers and the potential for further consolidation, particularly as the industry navigates these challenges.