Central Bank: investors withdrew more from IIS than they deposited for the first time since 2015

The Central Bank of the Russian Federation (CB) has published a review of key indicators of professional participants in the securities market in the third quarter of 2022 (.pdf). According to the regulator, the volume of portfolios of individual investment accounts (IIA) in the third quarter decreased by 7%, to 395 billion rubles.

The fall occurred due to the negative revaluation of Russian shares in September, as well as in connection with the withdrawal of funds by clients. As noted in the Central Bank, in the third quarter, for the first time since 2015, clients withdrew more funds from IIS than they deposited. The difference amounted to 4 billion rubles.

It follows from the review of the Central Bank that the number of IIA for the third quarter increased by 1%, amounting to 5.1 million. “In the context of high uncertainty in the economy and a reduced planning horizon, retail investors did not show significant interest in three-year investments in IIA,” the regulator explained.

The number of IIAs under trust management has been declining for the second quarter in a row – clients closed three times as many accounts as they opened. The regulator explained this trend by the low profitability of the largest strategies, as well as the propensity of citizens to short-term investments.

IIS is a brokerage account or a trust management account of an individual, with which you can purchase securities and currency on the stock exchange. Part of the investment can be received back in the form of tax deductions from the state. You can withdraw money from the IIS only when it is closed.

Lusine Balasyan