Open-end UIFs continued to grow in Q2

Weighted average returns of open-end unit investment funds (UIFs) focused on retail investors achieved a seven-quarter high of 17.7% in April—June 2019, according to the Review of Unit Investment Funds and Joint-stock Investment Funds. Improved dynamics in the stock market contributed to higher returns of UIFs. An increased portion of shares was the most significant change in open-end UIFs’ asset structure. This can suggest that clients tend to opt for higher risk and potentially more profitable strategies.

Given that some clients choose investment areas based on actual returns, net cash inflow to open-end UIFs resumed in 2019 Q2 (5.7 billion rubles). The increase in UIFs’ returns and a probable reduction of bank deposit rates may trigger a new cycle of household cash inflow to UIFs focused on retail investors.

UIFs’ net asset value (NAV) grew by 3.9% in April—June 2019. Their overall assets increased to 3.9 trillion rubles. The ratio of these assets to GDP equalled 3.7% (+0.1 pp YoY).

The NAV structure by UIF types remained almost unchanged in the past quarter. The proportion of closed-end UIFs was 89.2%, open-end UIFs accounted for 9.3%, interval UIFs and exchange-traded UIFs — for 1.4% and 0.2% respectively.