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Market of unit investment funds gets back to growth in Q2

19 August 2020
News

Against the background of the stock market recovery, the volume of unit investment fund (UIF) portfolios grew by 4.7% to total 4.382 trillion rubles in Q2 after a decline in Q1 due to the pandemic. Portfolios of funds for non-qualified investors increased by 6.3% to 974 billion rubles, according to the latest issue of ‘UIF Market Trends’.

Open-ended unit investment funds (OUIFs) (up 12.5% to 532.1 billion rubles in Q2) and exchange-traded funds (up 35.9% to 31.5 billion rubles) continue to gain popularity among retail investors. Volumes increased due to the influx of new investors, as well as due to market stabilisation and a lower key rate.

The weighted average yield of OUIFs recovered right after the market: it was 6% in Q2, and 1.9% in H1. After a setback in Q1, the highest returns in Q2 were shown by open-ended funds focused on shares. The returns on foreign and Russian equity funds for the quarter were 14.8% and 10.3% respectively, but the latter's half-year returns remained negative: −10.9%. OUIFs of Russian bonds, the most common among retail investors, returned to ‘plus’ and showed a yield of 4.6% for the quarter (3.9% at the end of H1).

Preview photo: Brian A Jackson / Shutterstock / Fotodom