Investors prefer commodity funds in September

Oct 15, 2021

September saw the Russian collective investments market continue to grow. The bulk of the revenue came from funds focusing on shares in Russian oil and gas companies.

The most profitable

Funds focused on shares in Russian oil and gas companies demonstrated excellent results. Sber – Natural Resources showed growth of 7.89% in September and entered the top 10 open-end and exchange-traded mutual funds in terms of yield, according to InvestFunds. This was facilitated by rising commodity prices, particularly in the oil and gas sector. Commodity funds were in the lead thanks to an increase in commodity prices and investor interest in equity funds. Brent crude oil futures rose by 8% in September, reaching USD 80 per barrel. Gazprom (+18.2%), Rosneft (15.4%) and LUKOIL (10.7%) led in September.

The most popular

According to InvestFunds, five Sber Asset Management mutual funds simultaneously made the top 10 in terms of investor funds attracted.

The Dobrynya Nikitich equity fund, whose portfolio is based on liquid stocks, took first place. The fund’s shareholders use it to earn income by investing in shares by mostly Russian issuers with sufficient liquidity and high growth potential. Clients invested approximately RUB 3 bn in September.

Sber – Balanced took second place with RUB 2.7 bn for the month. Demand for open-end mutual funds with mixed investment strategies is steadily rising. The fund invests in a diversified portfolio with dynamic asset distribution between stocks and bonds.

The top 10 also featured:

  • Sber – Natural Resources1, RUB 1.8 bn
  • Sber – Dollar Bonds, RUB 1.4 bn
  • Sber – MOEX Total Return, RUB 1.2 bn

Investor interest in equity funds was also boosted by rising commodity prices. Shareholders derived profit from funds for Russian broad market indices, in which shares in the oil and gas sector play a large role. The funds are still appealing as long as commodity prices remain unchanged.

Evgeny Zaitsev, CEO, Sber Asset Management:

“Equity funds are the most attractive for investors right now. The commodity trend remains very strong and hard to ignore. The Russian market is supported by high dividend payments by local companies. Investors may well remain interested in the stock market and, consequently, in equity and mixed funds. Further key rate hikes and rising inflation may weaken interest in bond funds, but current deposit yields are unlikely to replace a potential 15-20% return for investors when investing in equity funds. Nevertheless, to reduce investment portfolio risks, we recommend having a balanced portfolio and keeping a portion of your funds in bonds.”

References are to official MOEX data and the InvestFunds ranking of open-end mutual funds by profitability, as well as by funds attracted to open-end and exchange-traded funds from September 1 to 30, 2021.

Ranking of mutual funds by revenue (investfunds.ru)

Ranking of mutual funds by funds attracted (investfunds.ru)

OPIF RFI Sber – Prirodnye Resursy (Natural Resources)

OPIF RFI Sber – Fond Aktsiy Dobrynya Nikitich (Dobrynya Nikitich)

OPIF RFI Sber – Sbalansirovanny (Balanced)

OPIF RFI Sber – Dollarovye Obligatsii (Dollar Bonds)

BPIF RFI Sber – Indeks Mosbirzhy Polnoy Dokhodnosti Brutto (MOEX Total Return)