Rosgosstrakh Life supports the Central Bank's initiative to attract customers to the topic of patriotic investments

318
3
Rosgosstrakh Life 07 June 2022 18:41

Today, Olga Shishlyannikova, director of the Department of Investment Financial Intermediaries of the Central Bank of the Russian Federation, said that participants in the Russian collective investment market should pay attention to the topic of patriotic investments in order to attract customers.*

We offer an expert comment on this topic. The speaker is Boris Borzunov, Head of the Investment Insurance Department of Rosgosstrakh Life Insurance Company.

Rosgosstrakh Life fully supports the Central Bank's proposal to create patriotic products built on Russian infrastructure. According to the Central Bank, retail investors owned 2 trillion rubles worth of foreign assets at the end of 2021. In 2020-2021, investors acquired foreign assets worth 1.35 trillion rubles. This is almost 40% of all assets purchased during this period. For investors who have recently entered the market and do not yet have sufficient experience, up to 40% of the portfolio may be frozen or already frozen. This can lead to a significant negative effect for the entire market.

In this situation, capital protection products come to the rescue, for which the payment of the initial investment does not depend on foreign assets, and these are the products that life insurers have offered to their investors in recent years. In a growing market, capital protection products showed returns lower than the stock market, as the Central Bank often reminded us. But with a correction of 40%, which we see now on the Moscow Stock Exchange index and with the implementation of the scenario of a complete freeze of foreign assets, the return of invested funds to the investor in full is a direct proof of the effectiveness of this product solution, as well as the need for products with capital protection or guaranteed income in the client's portfolio.

The fact is that customers who now have an expiration date for such a product get a unique opportunity to get money without losses and enter the market at very favorable prices. Since we cannot be sure that the rebound will occur from the current levels and we must remember about caution and prudence, then products with guaranteed income or with a combination of guaranteed and investment income are seen as optimal. These are investments that are made in the assets of Russian companies. For example, a product with initial capital protection. A share is purchased with part of the funds, which can increase in price, and makes it possible to pay dividends, and in case of a drop in its price, the initial value of the share is protected. That is, the investor will receive a minimum – his money plus the initial cost of the stock. And in a good scenario, there are also dividends and additional income from the growth of the share price. It turns out such a protected patriotic investment. It seems to us that such products should be offered now to investors who have recently been "burned" on the stock market and are wondering whether to continue to believe in investments.