To give a boost to the recovery, the management companies, after a long work done by Assogestioni, the trade association, have accelerated the launch of new products designed to channel private savings towards the business world. In particular towards smaller companies that have greater difficulty in financing themselves.
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The EU passport
Among the latest arrivals on the market, there are the funds with a European passport, renewed. They are the Eltifs (European long term investment funds) which translated means European long term investment funds. Born in 2015 with the publication of the EU regulation 760, implemented in Italy with the decree 233/217 (which entered into force in 2018), the Eltifs also comply with the constraints and concessions provided for in the May Relaunch Decree (no.34) and in the decree law of August n. 104.
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To the Eltifs, as mutual funds with certain characteristics established in the EU regulation. the tax relief envisaged for Pir (individual savings plans) is applicable, or the exemption from inheritance taxes and from the tax on financial returns if the investment is held for at least five years; and again if the maximum investment thresholds are respected, which for the Eltifs have risen to 300 thousand euros a year and 1.5 million in five years.
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Among the other conditions for obtaining tax concessions is compliance with the restrictions in the composition of the fund portfolio: at least 70% of the assets must be invested in financial instruments issued by Italian and European companies not listed or listed on regulated markets other than the Ftse Mib and Mid Cap; the remaining 30% of the fund’s assets can be used for other investments in compliance with the regulatory provisions of the Eltifs.
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Another condition that the concentration constraint is respected in the fund: it is not possible to invest more than 10% in financial instruments issued by the same company. Among the latest innovations introduced by the latest decrees, there is also the elimination of the concept of uniqueness of the plan. Therefore, investors with the right profile can have an Eltif in addition to an ordinary Pir. thus doubling the tax benefits.
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Help for small businesses
Eltifs, such as Pir and Pir SMEs – explains Antonella Massari, Aipb general secretary – are a good financing solution for unlisted companies or companies with a market capitalization of less than 500 million. But seen from the investors’ side they are illiquid products and as such they present a certain degree of risk that must be well explained at the time of subscription. To prevent complex instruments from falling into the hands of inexperienced savers, in addition to adequate advice, another barrier has been introduced: investors with a portfolio of less than 500,000 euros cannot invest more than 10% of their portfolio in these instruments.
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But, the news is not over. Originally Eltifs as illiquid products were all closed-end funds. In these cases, the shares can be subscribed only in the promotional phase or at pre-determined intermediate expiries. Today, among the ranks of the new generation of funds, one is already open: the 8A + Real Eltif Italy of Banca Generali. Our other novelty is the multi-asset approach – explained Andrea Ragaini, deputy general manager of Banca Generali – so we can operate as a sort of private equity, but with an even greater level of protection and diversification.
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For now, there are four new generation Eltifs (see table): Eurizon Italian Fund Eltif which is already over a year old; Az Eltif Ophelia (Azimut); 8A + Real Eltif Italy (Banca Generali) and HI Algebris Italia Eltif (Hedge Invest). There are already others on the launch pad. Certainly one of Anima and one of Amundi. Eurizon, the first to take the field, also confirms its commitment to investments to support the real economy with new initiatives. A new Eltif and a non-reserved closed-end AIF are in the works
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