Collective investments and asset trust management market within 9 months of 2008

Crisis response - contained fall

Soft landing

According to Expert RA, by the end of the third quarter of 2008 the market of asset trust management lost 5% versus the first half of the year and amounted to 1.75 trln rubles. The result seems to be excellent against the drop of RTS index for the same period by 46%. The market was supported by corporate segments, namely by asset management pension reserves and individual management reserves - as a result, decreased assets in more aggressive market segments were smoothed.

By the end of the year the market would not show any signs of growth - we predict its capacity to average 1.6 trln rubles by the end of 2008.

Almost closed down

By the end of the third quarter of 2008 the market open segment of collective investments visibly shrunk. Of all unit investment fund assets only 13% are held in open and interval funds. The market "closeness index" has neared 90%. The trend may manifest itself even brighter by the end of the year due to faster deceleration of net asset cost of open and interval unit investment funds versus more stable closed segment.

Dollar in the way

Management companies got the better of the market in the third quarter of the year, but the small gain was minimized by the strengthened dollar.

Comparing the market indices and RAEX indices of unit costs makes it clear that management companies - with the exception of consumer and telecommunication funds - succeeded in beating the market. But 8 % dollar rate increase in the third quarter supports market indices and nullifies the management companies' achievements.