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Mutual investors couldn’t wait - Russia

Instability on world stock markets and poor results on the Russian stock market dampened private investors’ interest in mutual funds.

Kommersant estimates that the net outflow of funds from open mutual funds in July amounted to 1.7 billion rubles ($66.5 million) – one of the worst results in the last two years. Experts say the trend may continue in August. The greatest outflow from mutual funds occurred in April, totaling more than 1.9 billion rubles. At that time, the influence of the withdrawal by institutional investors of 2.5 billion rubles ($97.8 million) from the LUKOIL First Fund, managed by Uralsib, was felt. In July, the situation was different because private investors were withdrawing funds. Stock funds fared worst, with 1.79 billion rubles taken out. Mixed funds lost 450 million rubles. Only a part of those investors moved their money into more conservative funds. Securities funds gained 600 million rubles ($24 million). The rest remained in cash.

The impressive results from mutual funds in previous years were not seen in the H1 of this year, when income from mutual stock funds was -0.7%. In addition, the destabilization of world stock market caused by the mortgage crediting crisis in the United States also spooked Russian mutual fund investors, who expected to see its effects on the Russian stock market. Analysts expect investors to take a summer vacation and return only in the autumn, when alarm over American events will have passed and mutual funds are likely to attain an income level of 15-20%, which will be of more interest. (