Italy November Mutual Fund Net Inflows At EUR1.27Bln - Industry

Italian mutual funds posted a net inflow for the fifth month in a row in November, totalling EUR1.27 billion, according to figures from the country's fund management association, Assogestioni, released Friday.

Inflows were mainly in bond, mixed and equity funds, the Milan-based Assogesioni said in an e-mailed statement, adding that the total amount invested in funds had reached EUR422 billion.

Hedge funds, meanwhile, saw an outflow of EUR52 million, the association said.

Shares of Italian asset management companies such as Azimut SpA (AZM.MI), Mediolanum SpA (MED.MI), Banca Generali (BGN.MI) and Anima SpA (ANM.MI) as well as Intesa Sanpaolo SpA (ISP.MI) and UniCredit SpA (UCG.MI) are sensitive to the monthly data as their profits are linked to income from fees.

After years of massive outflows in Italy, following more the financial crisis, investors are seen resuming investing their savings in mutual funds as banks launch new products, according to industry observers.

Others say cash from the recently approved tax amnesty plan could also boost inflows.

-Gilles Castonguay, Dow Jones Newswires; [phone]; [e-mail]