Barring an unexpected twist, the hollowing out of Italy’s fund management industry will reach a new low in the coming months as the assets of domestically domiciled funds fall below the volume of money held abroad on behalf of Italian investors.

Offshore funds accounted for 49.3 per cent of Italian assets at the end of August, according to figures from Assogestioni, the country’s fund management association. Onshore funds accounted for just 50.7 per cent of Italians’ total pot of €418bn (£373bn, $616bn) of mutual fund assets, down from 52.4 per cent at the turn of the year and 60.8 per cent as of December 2006.