Italy

SRI in Italy is a relatively recent wave, the first fund being created in 1997. Now Italy is the second largest market as far as mutual funds are concerned – although very concentrated, with the first 3 funds accounting almost two third of the total AuM.

The situation is very different in the institutional investment market. Pension funds are still very small and struggling with a regulatory framework that has been changed several times in the last few years. With the recent reform (2005), that has also introduced a disclosure obligation on SEE aspects, the system is expected to have more stability and start growing steadily.

Some facts about the Italian market (as of 31/12/2007):

  • SRI Market Size: €3.4 billion for the Core SRI market which is very concentrated: the first three asset managers having around 95% of market share. Broad SRI has increased remarkably to reach €240 billion (simple negative strategy by Assicurazioni Henerali)
  • Influential actors: due to recent pension system reform, pension funds are expected to boost the SRI institutional market dramatically.
  • Leading Strategies: ethical exclusion, thematic screening and some best-in-class.
  • Number of funds1 : 21 investment funds in 2008.
  • Legal Milestones: Pension Reform (decreto 252/05) introducing disclosure obligations for pension funds, that shall give written information on whether and how social, environmental or ethical considerations are taken into account in the selection, retention and realisation of investments, as well as in relation to the exercise of the rights (including voting rights) attaching to investments.
  • Legal update (2009): After financial scandals occurred in 2005/6, the Italian Parliament passed a law to protect small investors. This act introduced several measures pushing for more transparency. One of these obliges financial institutions (banks, insurances, asset managers ...) offering products labelled as “ethical” or “socially responsible” to provide further information on criteria, processes, resources, results – to let investors understand what is the view proposed by the provider. To a large extent, the standard (put into practice via Consob Resolution No. 156961) follows the content of the Eurosif Transparency Guidelines. Signatories that are in line with them, are de facto compliant with the regulation.
  • SIF (yes/no): yes, forum per la finanza sostenibile

1 Avanzi Sri/Vigeo Research, “Green, Social and Ethical Funds in Europe”, 2008 Review. Data as of June, 30

For more information on SRI in Italy please visit the Italian SIF: http://www.finanzasostenibile.it/

Or download the Italian section of Eurosif's European SRI Study 2008