Actuality, October, 15, 2007

The stockholders invested $1,6 bln. in funds according to the results of raisings into the open mutual funds in 2006. In 2006 total investments into all types of open funds have increased by 4,7 times in comparison with 2005 and totaled RUR42,2 bln.

Among the open mutual funds leaders are the stock funds that attracted RUR23,5 bln. ($940 mln.). In comparison with 2005 the attraction volume into stock funds is 11,5 times more. Index funds and mixed investments mutual funds were no less popular among the investors that attracted RUR3,1 bln. and RUR12,6 bln. accordingly in the last year, that is eight times more than the results of 2005. But the fashion for conservative strategy passes away. The investors invested RUR2,5 bln in mutual funds’ bonds, that is 1,7 times less than according to the results of the last year.

According to the analysts, mutual funds stocks and mixed investments still will be popular among the investors this year, in spite of index mutual funds yielding to the same stock funds in profitability now. “It is not very clear yet how the market will behave this year, but considering the investors’ expectations, staking on the undervalue of the Russian market, still the greatest gain all the same will be in stock funds”, considers Vladimir Kirillov, the head manager of KIT Finance Investment Bank.

On the average the profitability of index mutual funds (65,1 %) was higher than of stock funds (45,8%) last year. In particular, if one of the leaders among the largest stock funds – the fund “KIT – Russian electric power industry” (the KIT Finance Management Company) showed the profitability of 84,2%, than the leader’s share of value gain among the index funds “Solid-Index MICEX” (Solid Asset Management Company) totaled 75,5 %. At the same time the profitability of many market leaders, that involved the most of all stockholders last year, was less than the indices of index funds. Nevertheless, the majority of managers are sure, that popularity of muttual fund stocks will not reduce this year.

According to Vladimir Kirillov from KIT Finance, the hit of 2007 will be the branch funds, as the IPO entry of many companies of the second and third echelon is expected. “While investing to the index mutual funds, the investor is in advance limited by the liquid securities circle and simply will not earn on coming IPO. Though in more long-term prospect the index mutual funds can replay mutual funds stocks”, added Vladimir Kirillov. Michael Habarov, the head manager of Alfa Capital Management Company, says also that the greatest gain of means have branch funds now. “The investors are ready to risk, as they consider that in case of the market falling the managers will be able to minimize losses”, explains Michael Habarov. From this viewpoint, according to him, index funds seriously lose to stock funds, as in this case the investor assumes all the market risk.

Concerning bonds funds, according to the market participants, the situation will not greatly change this year. It is obvious, that shown last year result of mutual funds bonds was quite predictable. Only 19 from 49 bond funds managed to change the inflation. Thus, even the best representatives in this category of mutual funds on profitability managed to earn 18-23 %. Whereas the mixed investments funds showed the profitability of 31,7% on the average, and stock funds showed 45,8 %. That’s why the investors hurried up to allocate the means in more profitable tools. Only in April-May mutual funds bonds lost above RUR638 mln. In June the stock indexes lowered to a minimum and many stockholders decided to remove means from risk strategy funds to more conservative ones. However, by the end of the year the interest of investors to bonds funds began to decrease and in November-December, 2006 the outflow of means began again. “While the profitability of mutual funds bonds is comparable to bank deposits, the investors will use this instrument to overstay a market collapse”, considers Elena Kasyanova, the head manager of the Bank of Moscow Management Company.

Such funds as “Sovershenniy” (Pifagor Management Company) and PIOGLOBAL mutual funds (PIOGLOBAL Asset Management) lost the most last year, as investors outflowed RUR1,2 bln. altogether. Another situation was observed with the funds under the management of Troika Dialog Management Company, Uralsib Management Company and Asset Management Company of Industrial and Construction Bank, Ltd. In particular, only mutual funds bonds of Troika Dialog – Sadko managed to involve RUR739,5 mln. of stockholders, and LUKOIL-Conservative Fund (Uralsib Management Company) – about RUR697 mln. According to Andrey Zvezdochkin, the deputy manager of Troika Dialog Management Company, in 2005 many investors, that took advantage of a good situation on the market, increased a stock share in portfolios, thus using bonds as an alternative to the current bank account. Ivan Gelyuta, the general director of Agana Management Company, does not exclude that popularity of bond mutual funds could increase, considering the tendency of deposits profitability decrease. “Though it will be quite difficult for the bond funds to overplay the inflation, if not to include stocks to their portfolios”, added Ivan Gelyuta.