Trends of the development of unit investment funds under sanctions

Objective: to identify promising areas of research, limitations and factors of UIF market development in order to elaborate methodological recommendations for the management of UIF assets.

Methods: content analysis and systematization of materials published in scientific journals and analytical publications; review of scientific literature, vertical and horizontal analysis, trend and coefficient analysis, correlation and regression analysis. Results: the development of the collective investment institution in Russia is characterized by certain features. Despite difficult economic and geopolitical conditions of the recent years, retail investors show considerable interest in unit funds. Against the background of COVID restrictions, active development of remote services, and aggressive marketing of management companies, the number of shareholders has increased significantly. The paper analyzes the main trends in the development of UIF market in 2018-2022; the main factors of the development of collective investments are formulated. It was determined that the key factors hindering the development of this market are the low level of financial literacy of retail investors, the poor quality of UIF portfolio management, leading to losses for unit holders, and the increased risks as a result of the sanctions burden on the Russian financial market. Based on the study results, the basic recommendations are formulated that may contribute to the development of the market and improve the quality of managing the assets of unit holders.

Scientific novelty: a review of research on the unit funds effectiveness was conducted, as a result of which it was determined that research on the collective investment market as such is poorly represented, and the problems of the market efficiency under sanctions are not considered. The main challenges and limitations of the collective investment institution development under the current economic conditions are formulated: (1) digitalization of the financial sector, (2) blocking of foreign assets, (3) low level of financial literacy of the population. Recommendations were made for the UIF market development:

(1) legal regulation of the transparency of funds, (2) creation of a system of assignment of claims on the unit holders’ assets, (3) creation of a system of remuneration for the UIF success with active investment strategies strategies.

Practical significance: the main results of the work can be used in the practical activities of managing companies in the management of unit investment funds under uncertainty of the environment.

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