Sber markets certificates following its indices

Jul 20, 2021

Sber has presented follow certificates, a unique product based on the company’s own indices. This is the first issue of this kind of derivatives in Russia and is currently available to Sber Private Banking customers only.

For over a year now Sber has been publishing trading strategies in the form of indices on its proprietary platform. The strategies keep track of financial instruments like stocks, bonds, crude and gold prices.

Customers can now add any of the Sber indices to their portfolios with a new instrument, a follow certificate, which mimics the dynamics of an index. The upsides of this instrument are its high liquidity and low fees, with ETFs being the closest alternative to this certificate.

Sber Markowitz Global Index is the first product incorporated into the certificate. Designed thanks to Sber Private Banking, it is based on the risk diversification and control principles outlined by Harry Markowitz, an economist who received the Nobel Prize. The index is essentially a diversified and actively managed ETF portfolio comprising seven asset classes, which were picked together with Sber Private Banking advisors. The portfolio is rebalanced each quarter.

Foreign financial markets are quite familiar with follow certificates, which are popular among investors looking to diversify their portfolios and pursuing growth strategies. Not so long ago, Sberbank started creating indices on its own index platform and is currently one of the largest index providers in Russia. This positions us to develop unique products within the Russian jurisdiction to respond to the growing demand from Russian investors. Our follow certificates have been designed with the practices of the world’s leading hedge funds in mind. Our clients can invest in a tailor-made international assets portfolio in one click, without working with their accounts regularly. The index’s underlying strategy adapts to the market environment timely. We believe that moving forward Russian investors will also recognize such financial products due to their convenience and reliability.

Alexander Zozulya

Senior Managing Director, Head of FX and Commodities Trading, Sberbank