MILAN, Jan 18 Reuters Italian asset manager Azimut expects to post a small loss on its business venture with UniCredit this year, but believes it will pay off in the longer term, its chairman said on Wednesday.

It39;d be surprising if it didn39;t show a slight loss for 2023 but there are doubtlessly profits ahead, Chairman Pietro Giuliani told a news conference.

Azimut said in December it had agreed with UniCredit to set up a new asset management company in Ireland, dubbed Nova Investment Management, tailored to the needs of the Italian bank, which has an option to buy up to 80 of the business after five years.

Azimut CEO and global head of asset management Giorgio Medda said on Wednesday the lack of disclosure of the financial terms of the deal had led investors to underestimate its potential.

Azimut will start distributing in the second half of 2023 investment products devised for UniCredit clients through the latter39;s branch network.

Medda said the products will be priced so as to preserve the 50 basis point net margin Azimut currently reaps on average on its Italian assets under management.

Giuliani defended Azimut39;s policy of applying high fees to its investment products saying the company believed in active asset management, despite it being a more costly strategy than a passive approach.

Asked about the expected new money inflows Azimut could reach through the UniCredit partnership, Giuliani said he hoped to get to a few dozen billion euros in assets…