Portfolios in trust expand by 10% in Q3
In 2019 Q3, the number of clients in the trust management segment continued to actively increase, first and foremost owing to standard management strategies presented by professional market participants as a more profitable alternative to bank deposits. These findings are given in the Review of Key Indicators of Professional Securities Market Participants.
The overall value of portfolios under standard management strategies grew by 10% to 196 billion rubles, while the average portfolio size shrank from 1.2 to 1.0 million rubles. The Bank of Russia carried out its first analysis of investment results across 30 most popular standard strategies. It revealed the following distribution by investment instrument: Russian bonds — 37%, Eurobonds — 29%, structured finance products — 22%, Russian shares — 7%, foreign shares — 5%.
Over the past year, actual returns under most strategies exceeded income on deposits, yet fell behind benchmark figures. In most cases, such a gap in returns may be caused by a substantial amount of explicit and implicit fees. However, within a number of strategies the said gap is partially offset by tax deduction that can be received in individual investment accounts (IIA).
In the reporting quarter, the average size of IIAs with credit institutions decreased to 64 thousand rubles versus 71 thousand rubles in the previous quarter and 110 thousand rubles last year. Contrastingly, the average account size of professional market participants — non-bank financial institutions was up to 185 thousand rubles as compared to 180 thousand rubles in 2019 Q2 and 163 thousand rubles in 2018.