Source: Central Bank of the Russian Federation in English
In 2019 Q2, banks continued to actively attract clients to trade in the securities market. Professional securities market participants increased the number of their customers receiving brokerage and depositary services from 2.9 million to 3.7 million, of which credit institutions comprised 65% and 72% respectively. This is confirmed by the data from the Review of Key Indicators of Professional Securities Market Participants for 2019 Q2.
The fast growth of the number of clients of credit institutions that hold a professional participant licence is explained by the availability of a large branch network, client base and advanced mobile apps, which allows them to economise on costs and offer affordable tariff plans for passive investors with a low initial investment amount. Most such clients are first-timers, and credit institutions’ potential to increase the client base remains significantly higher than that of non-bank financial institutions.
According to the report, the second quarter saw continued active growth of the client base in the trust management sector (by 21% to 204,000), primarily involving standard strategies. The total size of the standard strategy trust management portfolio grew by 6% to 178 billion rubles, whereas the average portfolio size declined from 1.3 million to 1.2 million rubles.
At the same time, the investment result of the most popular standard trust management strategies for the last year was worse than the yield on bank deposits and the performance of indices tracking the dynamics of principal asset classes. However, standard strategies remain popular because of the possibility to invest using individual investment accounts (IIA) with further tax deduction.
In 2019 Q2, the number of IIAs grew by 24% to 893,000 while the aggregate value of assets reached 120.3 billion rubles. Customers with IIAs accounted for 27% of all brokerage clients and 59% of all trust management clients. The average amount in IIAs maintained by brokers dropped from 117,000 to 104,000 rubles, while the average amount of trust management accounts shrank from 373,000 to 334,000 rubles.
27 September 2019