Balanced emerges as Russia’s most popular hybrid investment mutual fund in 2020

Jun 11, 2020

June 11, 2020, Moscow — In 5M20, Sberbank Asset Management’s Balanced[1] mutual fund welcomed RUB5 bln[2] from investors, which is more than any other hybrid mutual fund in Russia attracted. In May alone it saw some RUB800 mln in investments, which is also the best figure among all hybrid mutual funds that month.

Dmitry Postolenko, Manager of Balanced mutual fund, Sberbank Asset Management,

“The idea behind ​​the mutual fund is to free a person from choosing between stocks and bonds, reliability and increased income. Here’s how this works. In March, we observed a sharp drop in prices of shares of oil producers, but from May 1 large-scale crude production cuts were scheduled to become effective, which would have resulted in higher crude prices and appreciation of oil companies’ stocks, respectively. We had increased the share of such companies in our portfolio beforehand, managing to earn on their growth. This enabled the Balanced fund to be a top performer in May in terms of yield, which stood at 3.15% a month.”

The hybrid mutual fund lets shareholders invest in a widely diversified portfolio of securities, which includes promising shares and bonds of large reliable companies. The fund invests in both stocks and bonds, which lets it react to market changes quickly. If a stock market is on the rise, it may inject more in stocks to get higher yields, while if the trend is the opposite, it will balance its portfolio with more bonds that are a safer investment less inclined to depreciate and recovering faster.

This press release cites data regarding injections in hybrid investment OEMF between January 1 and May 29, 2020, and yield between May 1 and 29, 2020.

[1] OEMF RFI Sberbank – Fond Sbalansirovanny

[2] According to