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The relationship between quality and growth in the Italian open-ended Pension Fund market

Gian Marco Chiesi, Mario Valletta, Paola Zocchi
March 2024 - n. 3
Keywords: Fondi pensione aperti, mercato, educazione previdenziale
Jel codes: G23, G32, J32

This article aims to verify whether the quality of open-ended Italian Pension Funds, taken from the informations on performance and costs contained in the prospectuses, is able to influence the ability to attract members and investment flows. The results show that the annual performance and costs are irrelevant for the purpose of attracting adherents. Other variables, such as the size of the funds and the market strength of the sponsor, can explain a significant share of the growth of the different funds. Although the incidence of these factors has decreased since the European Regulation of 2014 on Priips, they continue to be dominant. These results suggest the opportunity for a further revision of the set of information in the prospectuses in order to facilitate comparisons between competing products and to increase the information effectiveness of the benchmarks. This effort should be supported by Educational actions, aimed at increasing sensitivity and awareness of the tools available to encourage informed choices.

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