All news

Russians invested 638 bln rubles ($8.6 bln) in foreign stocks, bonds in 2020

This is more than twice the size of the decline in the volume of funds on foreign currency accounts and deposits of individuals in Russian banks over the same period, the Bank of Russia stressed

MOSCOW, February 16. /TASS/. The inflow of funds from individuals in shares and bonds of non-residents amounted to 638 bln rubles ($8.6 bln) in 2020, according to the Bank of Russia’s review of financial risks.

This is more than twice the size of the decline in the volume of funds on foreign currency accounts and deposits of individuals in Russian banks over the same period, the regulator stressed.

"The purchase of foreign securities can be partially explained by the redistribution of households' savings in foreign currency from deposits to investments with higher expected returns," the regulator said.

"At the same time, most of the inflow was provided by investments in foreign shares, which indicates the emergence of a risk-oriented strategy in the behavior of the population, in addition to traditional ways of investments in debt instruments, "the Bank of Russia added.

Thus, the inflow of funds from individuals into the shares of companies registered in foreign jurisdictions in 2020 amounted to 415 bln rubles ($5.6 bln). Of this amount, 70 bln rubles ($949 mln) accounted for investments in shares of issuers affiliated with Russian companies.

American companies, which are included in the main stock indices: S&P 500, NASDAQ, Dow Jones account for the largest influx of funds.

The largest increase in household investments was observed on the St. Petersburg site: the volume of net purchases of non-resident shares for the year soared by more than 30 times - from 8 bln ($108 mln) to 242 bln rubles ($3.3 bln).

As of January 1, 2021, the total volume of investments of individuals in non-resident shares (in particular on the Moscow Exchange) amounted to 570 bln rubles ($7.7 bln), investments of individuals in shares of non-residents affiliated with Russian companies amounted to 142 bln rubles ($1.9 bln).

The inflow of funds from individuals into bonds of non-residents for 2020 amounted to 223 bln rubles ($3 bln), of which 95 bln rubles ($1.3 bln) account for bonds of non-residents affiliated with Russian companies.

The Bank of Russia also noted that despite the growing interest of citizens in foreign securities, investments in securities of Russian issuers still account for 85% of the population's investments as of January 1, 2021.