2021 results: equity funds did well, but investors stuck with bonds

As of the end of 2021, extractive industry and broad market funds were the most profitable Sber Asset Management assets at the expense of oil companies, demonstrating returns of over 25%. The growth of the stock market attracted investors, who increased their investments in mutual equity funds throughout the year. At the same time, investors did not completely abandon bonds, preferring hybrid funds. Interest in the debt market rose sharply in late 2021.

The most profitable of the largest funds

At the end of the year, two Sber Asset Management mutual funds made InvestFunds' top 10 ranking of funds in terms of revenue with a net asset value of over RUB 1 bn.

Sber - Natural Resources [1] demonstrated revenue of 29.43% per annum and was one of the top five most profitable mutual funds in Russia. This was facilitated by high oil prices and the corresponding growth of stocks of commodity companies forming the basis of the fund.

The S&P 500 exchange-traded mutual fund [2], which includes major US companies from the eponymous index, grew by 27.99%. The S&P 500 index has demonstrated high returns for several years.

The most popular

Sber Asset Management has managed to maintain its top position in terms of the volume of funds managed for four years in a row. In 2021, six Sber Asset Management mutual funds were included in InvestFunds' top 10 funds based on funds attracted.

Retail investors have been the main growth driver in the collective investments market for a number of years, using a diversified approach when investing funds. Last year, RUB 25.6 bn were invested in the Balanced mixed investment fund (investing in both shares and bonds). The fund ranks second among Russian mutual funds based on shareholder funds attracted. The popularity and relevance of the fund indicate that it is premature to talk about shareholders moving on from bond funds, although outflow and expansion of retail investor assets in equity funds were observed against a backdrop of key rate growth and stock market growth.

Investors invested RUB 19.2 bn in the Dobrynya Nikitich fund and RUB 12.9 bn in the MOEX ETF. These mutual funds include shares in major Russian companies, always in demand on the stock market and featuring high growth potential, which draws shareholders. Sber - Natural Resources is no exception, with investments rising by RUB 11.9 bn due to high oil prices and good dividends.

The best results in the debt market were demonstrated by bonds of companies from the second and third tiers, including PIK, JSFC Sistema, and LSR (2nd tier) and Brusnika, SoftLine, and Eurotorg (3rd tier). RUB 13.1 bn were invested in the Sber - MOEX Ruble-Denominated Corporate Bonds mutual fund. Foreign currency bonds were slightly less popular, but interest on the part of investors increased again in December, with investments of RUB 12.4 bn attracted to the Sber - Dollar Bonds fund.

Evgeny Zaitsev, CEO, Sber Asset Management:

"The collective investments market continued to grow in 2021, reaching RUB 2.2 tn, according to our estimates. This increase was ensured both by an inflow of new money from private investors and the growth of funds already invested due to competent work by our managers. Equally important is the fact that the discretionary investment management market is developing not only in quantity, but also in quality. It incorporates the best practices and the most advanced technology, making investments and the stock market increasingly accessible. Buying or selling a mutual fund is now no more difficult than calling a cab or ordering a pizza, which gives investors the opportunity to react flexibly and quickly to market changes. In particular, it provides them with an opportunity to use market shrinkage at the beginning of the year to form long-term investment positions in a portfolio. Experience shows that it is in periods of increased volatility that the highest returns can be obtained."

This release contains official data from the InvestFunds rating assessing the profitability and attractiveness of open-end and exchange-traded mutual funds with a net asset value of over RUB 1 bn between January 1 and December 31, 2021.

Sber - Prirodnye Resursy open-end fund for market financial instruments (Financial Resources)

Sber - S&P 500 ETF for market financial instruments

Sber - Fond Sbalansirovanny open-end fund for market financial instruments (Balanced)

Sber - Fond Aktsiy Dobrynya Nikitich open-end fund for market financial instruments

Sber - MOEX Russia Total Return ETF for market financial instruments

Sber - MOEX Ruble-Denominated Corporate Bond ETF for market financial instruments

Sber - Dollarovye Obligatsii open-end fund for market financial instruments (Dollar Bonds)