Retail UIFs make profit: Q4 results
In the fourth quarter, retail unit investment funds (UIFs) showed a positive rate of return for the first time in 2022. This was driven by the recovery of the stock market as the UIFs’ assets primarily consist of the instruments of this market. This is stated in the Review of Key Indicators of Unit Investment Funds and Joint-stock Investment Funds.
Over the above period, the inflow of funds to Russian UIFs hit a new record high of 764.1 billion rubles. The main contributors were closed-end UIFs held by legal entities. However, these instruments are also gaining popularity among households. The number of unit holders in closed-end funds for non-qualified investors increased by 14.5% or 16,300 people in the fourth quarter alone. The strategies of these funds are to invest in non-financial assets, for example, real estate.
Investments in exchange-traded UIFs rose too largely on the back of funds focusing on short-term investment of customer cash. Their conservative investment policy mitigates risks taken by unit holders and allow them to wait out a high market volatility period while holding safe liquid assets. However, the issue of units in open-end funds dropped in the fourth quarter.
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