Standard trust management strategies gain traction

Based on 2017 Q2, standard trust management strategies extend to 71.6 billion rubles worth of assets, or 27.8% of the total value of investment portfolios in trusts with nonbank financial institutions (NFIs) that are professional financial market participants. As many as 38.8 thousand clients, or 85.4%, preferred these strategies, according to the Review of key performance indicators of professional financial market participants for 2017 Q2.

The average investment portfolio value for NFI clients stands at 5.7 million rubles for all trust management strategies and 1.8 million rubles for standard strategies. This structure is explained by the specifics of standard strategies widely used to manage many clients with modest investment portfolios. Conversely, large investment portfolios require tailor-made management.

The review sets out important regulatory innovations aimed at better reliability and transparency in market participants’ operations. Included is an analysis of individual investment accounts (IIAs), a market tool currently gaining popularity. By the end of Q2, there were over 238 thousand such accounts, of which investment portfolios totalled in excess of 28.6 billion rubles. Stock and federal government bonds make up the largest share of IIAs. Once the limit of investment is increased from 400 thousand to 1 million rubles a year, the IIA tool is set be widely sought-after.