Client assets under management rise to ₽34.7 trillion
The Central Bank of Russia reports client assets under management reached ₽34.7 trillion in Q1 2026, marking a 6.3 percent quarterly and 25.3 percent annual increase. Management companies also saw significant growth in net profit and fees.
Assets swell, profits follow
Growth in client assets under management (AUM) continued in Q1 2026, primarily driven by inflows into mutual funds (PIF).
Net profit for management companies (MCs) grew year-on-year, following a more than twofold increase in service fee income.
This was largely due to higher fees from managing non-state pension fund (NPF) portfolios, which benefited from sharply increased weighted-average investment returns in 2025.
Total AUM reached ₽34.7 trillion by March 31, 2026, representing a 6.3 percent quarter-on-quarter and 25.3 percent year-on-year increase.
Discretionary management (DM) client portfolios also expanded to ₽3.5 trillion, up 6 percent quarter-on-quarter and 24 percent year-on-year.
The median return on individual DM investments was 4.0 percent in Q1 2026, with bond strategies showing the highest returns.
Mutual funds shift focus
Net inflows into mutual funds (PIF) saw a slight quarter-on-quarter slowdown to ₽819.6 billion in Q1 2026, though still significantly above Q1 2025.
This moderation was primarily due to reduced inflows into retail funds, especially open-end mutual funds (OPIF).
However, closed-end mutual funds (ZPIF) experienced a robust increase in net inflows, growing over 1.5 times quarter-on-quarter to ₽453.7 billion, largely propelled by corporate funds.
Investors favored strategies focused on bonds and money market instruments, although the appeal of money market-only funds waned with declining key rates.
Notably, the number of complaints regarding PIF management nearly halved year-on-year to approximately 50 units, with a significant reduction in issues related to investment unit redemptions.
Resilience, but shifting tides
The sustained growth in client assets and management company profits underscores the resilience of Russia's financial sector, adapting to evolving market conditions.
The observed shift in mutual fund inflows, favoring corporate closed-end funds, indicates a strategic investor search for specific yield or stability in a dynamic interest rate landscape.
This trend highlights the importance of product diversification and clear communication to maintain broad investor engagement and market health.