Azimut Holding CEO Gabriele Blei: For 2021 We Are Aiming for the Annual Total Net Inflows, AuM and Net Profit Record

The record 2021 of Azimut Holding, an Italian company among the world’s largest private equity operators, continues: the group’s growth continued in September, bringing total deposits from the beginning to the year to exceed 15 billion euros, despite the recent increased market volatility. We talked about it with CEO Gabriele Blei.

In September, the positive net inflows recorded by Azimut amounted to 1 billion euros, in a historically weak month from a financial point of view. What is the outlook for the last, decisive quarterly report of the year?

The Group’s growth continues at a sustained pace also in September, a historically weak month for financial assets, bringing total net inflows from the beginning of the year to € 15.3 billion (€ 8.4 billion, net of the consolidation of Sanctuary Wealth). Despite the recent increase in market volatility, the average customer performance net of fees remains positive between + 5% and + 6%. The recent uncertainty on the financial markets is driving our customers and our distribution networks to review the asset allocation of portfolios to include also private market funds. We are the only ones to offer to retail clients through our financial advisors a diverse range of products, both liquid and illiquid, which will continue to expand to seize opportunities, especially in private markets. In September, net inflows were also supported by growth in our international operations, which is one of the pillars of the geographic development and diversification strategy, whose AuM have reached 39% of the total. In the last three months of the year, under normal market conditions, we expect to close the year by hitting the annual inflows record for the Group as well as increasing the share of products investing in the real economy to around 5% of total AuM.

The markets appear to be characterized by a certain volatility. In your opinion, what are the causes and why can Azimut customers rest assured?

In the past weeks we have witnessed a sudden increase in market volatility linked to certain factors, such as changes in inflation expectations, the rise in yield curves and the next moves by Central Banks which produced a significant sector rotation. In addition to this, the increase in the prices of raw materials and the bottlenecks that have resulted in the supply chain are creating difficulties in certain sectors of global economies. The reporting season in America is delivering a mixed scenario with sectors and companies showing above-expected earnings growth, although to a lesser extent than in previous quarters. However, a direct impact of the macroeconomic context on supply and demand is beginning to be visible. This requires ever greater diversification and a reassessment of asset allocation. It is now increasingly urgent to include products linked to the real economy that in the medium term offer higher returns than traditional asset classes.

The Azimut Group is focusing ever more decisively on foreign markets. What is the global strategy and which areas of the world will be affected by future expansion?

Foreign expansion has been a pillar of the Group’s strategy since 2011. We are the only ones in Italy and among the few around the world to have developed product factories with managers and analysts who interact with our proprietary distribution networks of financial advisors. We do this to bring innovation and positive performance to our customers and allow them access to international markets through the funds we manage. Today we are present in 17 countries with € 30.4 billion in assets under management. Working mainly in emerging markets or in the alternative products segment, we believe we have ample room for future growth, intercepting the demand of customers who need innovative products and greater financial advice. In Brazil, Asia and the Middle East, we think we can increase our market share, both due to the dynamics and medium-long term growth of the markets where we operate, and by continuing to develop our businesses through organic growth and further acquisitions. In addition to this, we have just signed a strategic partnership in Brazil with XP, a leading independent operator that has developed a technological platform for investments and financial services with 3.3 million customers and approximately R $ 800 billion in assets. Together with XP, which will acquire a minority stake in AZ Quest, we will further develop our local management company and create synergies with their distribution platform.

In the USA, an increasingly important market for Azimut, we are and will continue to develop both our distribution channel through Sanctuary and our investment in alternative GP companies spanning private equity and private credit opportunities.