Bank of Russia assesses returns on brokerage clients’ portfolios
The Bank of Russia has analysed the returns on investments made by retail brokerage clients from 2023 to 2025, based on the largest companies’ data. The regulator assessed client portfolios worth from ₽10,000 to ₽10 million. The analysis showed that their average annual return came in at 2.9%.
The returns were distributed unevenly, with 5% of investors recording losses of over 10%. A third of clients either incurred smaller losses or preserved their capital, albeit failing to make gains. The share of those who managed to achieve positive returns equalled 63%.
The majority of successful investors (41%) generated fairly modest returns of 0.1–6.7% p.a., which is below Moscow Exchange’s Russian Government Bond Index – Total Return (RGBITR). This benchmark was surpassed by 13% of investors, with returns ranging from 6.71% to 17.2% p.a. The upper bound of this range corresponds to the MOEX Russia Total Return Index (MCFTR), which reflects share prices including dividend income. Only 9% of all retail brokerage clients made gains exceeding these indicators.
Financial success is determined by an investor’s age and experience. The best results were achieved by those who added units of unit investment funds to their portfolios. The average return on these instruments for non-qualified investors over the past three years stood at 17.9% p.a. By contrast, derivatives were more likely to worsen clients’ position.
Investors who choose to engage in exchange trading independently should understand the nature of different financial instruments, be realistic about their risk appetite, and study the information on issuers. For those who have no time or desire to navigate the complexities of the securities market, collective investment instruments or professional investment managers would be a better option.
The results of the study may contain minor inaccuracies as the analysis relies on the data of individual brokers who apply different calculation methodologies. In addition, the assessment did not take into account part of income on brokerage clients’ assets, e.g. coupon income on bonds and dividends on shares where these payouts were immediately credited to clients’ bank accounts at their discretion.
The Bank of Russia considers it important for brokers to independently and regularly analyse returns on client portfolios. Ultimately, such assessments will provide insight into the long-term resilience of professional market participants whose incomes depend on the volume of clients’ investments and their interest in conducting transactions in the financial market.