Data from Assogestioni, the Italian hedge fund managers' association, points to an almost 32% growth in hedge fund investment in Italy. By October-end, hedge fund allocations stood at almost 36 billion euros more than double the figure at the end of 2005. Due to the restrictions on marketing single hedge funds onshore, the vast majority of these assets has been placed with funds of funds.

A small proportion of this growth in AUM has been driven by investments from Italy's major institutions such as pension funds or insurance companies. Nonetheless, the signs show that this is poised to reverse, with industry experts believing these institutions will significantly increase allocations to hedge funds and other alternative assets in the coming years. Ferdinando Carignani, of Italy's pensions watchdog COVIP (Commissione vigilanza fondi pensione), said the adoption of hedge funds by pension providers was attributable to the brief history of both hedge funds and of occupational pension schemes themselves in the nation.

 

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