Investment funds and companies in the securities market. Formation and activity of investment companies Investment companies in the securities market

Investment market of the beginning of the 21st century, in its structure, variety of instruments used and composition of participants, it became as interesting as it was at the same time complex.

If for a qualified and professionally trained participant financial market understanding the essence of the work of the financial industry is clear, but for most it remains incomprehensible and attractive - unattainable this whole world big money, fantastic stories of acquiring fortunes and the like.

This article aims to talk about several very important elements of the investment business that almost any person is faced with or will soon become familiar with. We will talk about investment funds and management companies that not only increase the welfare of fairly wealthy citizens, but also manage pension or family savings almost everyone who works, runs their own business or has already retired.

Investment funds and investment companies - why they exist and how to use them

The economy of any country that strives to be among civilized states is built on the principles of global division of labor (everyone does what he can do best), competition and constant expanded reproduction of material, intellectual base and human resources.

The reproduction of human capital is the cornerstone of the modern post-industrial era, since, on the one hand, it is a consumer of goods, and on the other hand, it is the very source of their production. In order for human capital to work as little as possible and consume as much as possible and for as long as possible, it is necessary to create such conditions so that this happens throughout a person’s life.

In principle, the average family cannot realize this using simple methods of simple accumulation and savings. For this system to work, households must save part of their funds in addition to consumption.

Moreover, this savings must be self-reproducing. Simply put, money set aside for future periods of consumption (as they say in Russia “for a rainy day”) must work. This is actually why there is a whole investment industry, which is represented by a large number and no less impressive variety of institutions, which, first of all, include investment companies and.

The main role of investment companies and funds is to ensure that the collected or attracted funds of founders, investors, and ordinary investors are formed into a single investment portfolio, which, under the management of professional (competent) managers, brings its owners income from investments in financial markets or any other (capable ensure cost growth over time).

The main difference between investment companies and funds (it should be noted that this difference can sometimes be purely arbitrary) is that:

1. An investment company works with the money of its founders, investors and carries out its activities on behalf of and on behalf of those who invested their capital (also at their own peril and risk). Funds, for the most part, are pension funds (see), investment funds (mutual funds, for example) work with attracted funds large quantity citizens, on the basis of either contractual relations or in a system of certain obligations (such as compulsory state pension insurance).
2. The investment company directly invests its assets in the market through the issue own shares which are distributed through shareholders. Also, through the shareholder form of capital, ICs distribute received income and dividends. Funds, as a rule, only accumulate (collect) funds from investors, determine their shares (shares, for example, in the same mutual funds) and fix them in documentary form relations with the investor. Same thing direct control is carried out by a specially hired management company (see) or a group of professionals manages the fund’s assets. Management Company The investment fund selects assets for investment, ways and methods of investing money, a strategy for behavior in financial markets, etc.
3. The activities of an investment company and fund are regulated by a fairly wide range of regulations and documents. If we talk about an investment company as a standard commercial enterprise (Joint-Stock Company), then no special questions arise here and the relationship is governed by ordinary commercial law. If investment funds and companies use raised funds from the public in their activities (regardless of whether it is private trust management or collective), then, for example, Russian legislation has very stringent requirements for investment institutions and no less stringent sanctions for violations. Main regulations currently are:

• Order of the Federal Financial Markets Service of the Russian Federation dated December 28, 2010 No. 10-79/pz-n (as amended on May 31, 2011) “On approval of the Regulations on the composition and structure of assets of joint-stock investment funds and assets of mutual investment funds.”
• the federal law dated April 22, 1996 No. 39-FZ “On the securities market”

If we talk directly about the types and types of investment companies and funds, then in world practice there is no single approach or classification of these financial institutions. In many ways, everything depends on the national jurisdiction, type of market, and capital management strategy.

IN general view investment companies and funds can be represented by the following main categories of types:

• Financial, or operating exclusively in the securities markets, foreign exchange or using standard banking products(deposits, certificates, bill assets, etc.). In Russia, the most famous representatives of this group are the Uralsib Capital fund or the VTB Capital financial group.
• Real estate funds. These are funds and investment companies operating in the market capital investments, commercial and residential real estate, including through participation in development projects.
• Real investment. These are funds and companies whose main activity is investing the capital of their founders and investors in real commercial projects that can generate profit over a fairly long period of time. These include the purchase of controlling stakes in such companies (projects), as well as direct investment of money in the business.
• Venture or innovation funds and IC. This category is becoming more and more popular among many investors around the world. In addition to the fact that money is invested in promising projects new economy and technology (even with an increased average level of risk), the income from such investments is much more significant than with a standard set of investment portfolios. Just look at the American stock market of the last 4-5 years and you can see that the industrial giants of the economy of the last century are not the favorites there. Investors have prioritized investing in what the whole world knows and uses - namely, Google, Apple, Facebook and many others. In this regard, Russia has nothing special to stand out yet, but if you look at the Yandex quotes, you can see that any “Gazproms” there will probably never see such interest from investors.

Conclusion

In addition to the main types of institutions listed above collective investment, there are also various combinations of them, both in investment strategies and in organizational and managerial architecture. For example, mutual funds of investment companies or funds of funds, when the method of cross-exchange of capital is used, management powers when creating flexible structures within investment holdings or corporations.

In general, an investment company is a corporation, trust, or partnership organized under government law that invests the pooled capital of shareholders in accordance with the objectives of the shareholders. A fairly unambiguous classification of whether foreign investment funds belong to one or another type of investment company is difficult. However, if we exclude some of the intermediaries - “deposit” companies, guided by organizational and legal characteristics, we can distinguish the following main types of investment companies: mutual funds ( Mutual Funds) (or "open" - Open-end ), closed-end mutual funds ( Closed-end Funds), a pooled investment trust ( Unit Investment Trust – UIT ), index mutual funds ( Index Exchange-Traded Funds – ETFs ). Investment companies, not falling into the category PC, make up a group called investment management companies ( managed investment companies).

In turn, each of these types of investment companies includes several subgroups formed by a combination mainly of such classification criteria, as types of assets:

• stocks, bonds and income securities, taxable money market instruments, tax-exempt money market instruments;
• investment goals(investment policy) of funds;
• precious metals, foreign investments, global stocks, stock income, flexible portfolio, balanced portfolio, mixed income, bond income, valuable government papers, global bonds, corporate bonds, high-yield bonds, long-term municipal bonds, taxable money market instruments, tax-exempt money market instruments, etc.

There is a significant variety of forms and types of investment companies, formed based on global practice and the needs of investors.

Mutual Fund ( Mutual Funds is an investment company that purchases a portfolio of securities selected by a professional investment advisor ( investment adviser), in accordance with the financial goal of the fund (shareholders-investors). Investors purchase shares of the fund, which represent a proportionate ownership in the securities of the entire fund. There are no restrictions on the number of shares issued by a mutual fund.

Based on the type of assets, there are three main types of mutual funds: equity ( Mutua lFunds -stock (they are also called equity )), bond ( Bond Fund) and money market funds ( Money Market Funds).

Bond funds ( Bond Funds invest in fixed income securities. Some of them specialize only in certain types of securities, such as corporate or government bonds.

Money market funds ( Money Market Funds) invest capital in a pool of short-term, interest-bearing ( interest-bearing ) chain papers. Money market funds invest in short-term securities such as municipal papers, fixed income Treasury bills, short-term commercial bills, and bank certificates of deposit.

The International Stock and Bond Mutual Fund provides retail investors with a convenient, low-cost route to investing in foreign equity markets compared to investing directly in those markets. International investments offer investment diversity and the possibility of higher returns.

Closed investment company (Closed-end Investment) or variety closed funds (Closed-end Funds), unlike open investment companies and funds, do not redeem their shares at the request of their owner. Instead, closed-end fund shares are traded on exchanges or in the over-the-counter market. Therefore, an investor wishing to buy or sell shares of a closed-end fund must make an application to his broker in the same way as he would if he were buying or selling shares, e.g. Microsoft.

Most closed-end funds have no time limit on their existence. Dividends and interest earned by a closed-end fund on its portfolio securities, as well as net capital gains, are distributed to shareholders. However, many funds allow (and encourage) reinvestment of such payments. In this case, the Fund does not distribute funds among investors, but transfers them additional shares at a price below cost net assets or market value shares at that moment. Because a closed-end fund is a corporation, it can issue shares not only in connection with the reinvestment of distributions, but also through a public offering. However, this does not happen often, and for the most part the fund's capitalization is "closed".

There are two main types of closed-end funds – stocks and bonds.

Closed-end equity funds have the risk that the value of portfolio securities issued by the fund will decline, resulting in a decline in net asset value ( NAV ), as well as to a decrease in the market value of the fund.

Closed-end bond funds are subject to some degree of market risk and credit risks. Market risk is that interest rates will rise, reducing the value of the bonds that make up the fund's portfolio. Generally speaking, the longer the maturities of a fund's portfolio securities, the greater the variability (volatility) of its portfolio. NAV and market risk.

Pooled Investment Trust (Unit Investment Trust – UIT ) is an investment company that, throughout its existence, owns a portfolio of securities of a specified size and structure.

In order to create PC the founder (often a brokerage firm) - a person who contributes capital to create a company - buys a certain package of securities (stocks, bonds, etc.) and transfers them to a trustee (for example, a bank). The company then issues its shares, known as redeemable certificates, which are distributed to investors. These certificates provide their owners with ownership of securities held by the trustee (in proportion to their share of participation). All income received on the securities by the trustee, as well as the face value, is then paid to the certificate holders. Installed at creation UIT the set of securities changes (i.e. some securities are sold and other securities are bought) only in exceptional cases.

Majority UIT own fixed income securities and cease to exist when the securities expire (or are sold). The life of the trust ranges from six months for pooled investment trusts dealing in money market instruments and stocks, to 20-30 years for companies dealing in bonds with maturities of more than one year.

Index Mutual Funds (Index Mutual Funds) and exchange traded funds ( Exchange-Traded Funds – ETFs ) are similar in that each of them contains investment portfolios that are linked to an index reflecting the dynamics of a particular sector or market as a whole, or to a specific portfolio of stocks and are aimed at providing investment returns comparable to the value of a specific market index. Investors, both retail and institutional, are considering ETFs and index mutual funds as investment options that make up their securities portfolios.

Despite the similarities ETFs and index mutual funds, there are key differences between these two types of investment products.

ETF created by the sponsor who selects the target index ETF, determines which securities will be included in the "basket" of securities and decides how many shares ETF will be offered to investors. Stock ETF are issued when an institutional investor with ETF or a trust (affiliated institutional investors) deposits into the depository large blocks of securities belonging to them, identical or almost identical in composition to the securities in the target index ETF. In exchange for this basket of securities ETF issues an equivalent number of shares to an institutional investor ETF: blocks of shares - “basic units” (creationunit), for example 50 thousand shares ETF, which he, as a legal owner (creationunitholder), can, depending on the current situation: hold; exchange back for your shares at net worth assets; sell on the stock exchange. Stock ETF are included in the listing of the series stock exchanges, where investors can buy them in a similar way to publicly traded shares trading company. Unlike institutional investors private investor can operate with ETF only on the stock exchange.

There are four main types ETF.

• 1. Stock index funds reflect a local stock price index, such as the S&P500 or the Tel Aviv 25 index, international indices stock prices, such as, for example, "index Nikkei 225". There are also index funds that reflect structural indices of stock prices, such as the Biotech Index NASDAQ". Index funds reflecting international indices are traded on the exchange in the currency of the country that established the index (i.e. the price of an index fund reflecting the Eurostock 50 index depends on changes in this index, as well as on changes in the exchange rate of the euro relative to the local currency).
• 2. Currency index funds (capital notes) reflect exchange rates and contain weekly interest, which is calculated daily and paid quarterly. For example, the price of an index fund consists of two parameters: the first is the current dollar rate used in trading between banks, and the second is a percentage based on the interest rate LIBOR in dollars less margin.
• 3. Commodity funds reflect the prices of goods such as oil, silver, gold, corn, etc.
• 4. "Short" funds reflect inversely indices of securities rates, exchange rates or prices of goods, i.e. A "short" fund allows an investor to earn income while stock indexes, foreign exchange rates, or commodity prices decline. Added to the price of the “cake” fund interest rate, paid periodically to investors. The interest on the cake fund depends on how the cake fund is created: a cake sale of shares through a share loan, or a contract sale that creates collateral containing the interest rate.

From the point of view of Russian legislation, an investment company is a credit and financial institution that accumulates funds from private investors by issuing its own securities (liabilities) and placing them in shares and bonds of enterprises in its country and abroad. Unlike holding companies, investment companies do not exercise control over the activities of corporations. Depending on the method of forming liabilities, investment companies are divided into two main groups:

• closed type, which have a fixed share capital and whose shares are quoted on the market and are not subject to redemption until the liquidation of the company;
• open type, which have constantly changing capital, since their shares are freely sold and bought by the companies themselves at prices corresponding to the current market value of the assets of the investment company. Investment companies act in the financial market as investors. Like investment banks, they occupy an intermediate position between the borrower and the individual investor, but differ in that, unlike banks, they cannot engage in other types of intermediary activities.

As well as investment banks, investment companies facilitate investments, both direct and portfolio (through financial market instruments: shares, bonds, etc.).

Direct investments - attachments Money V material production and sales for the purpose of participating in the management of the enterprise in which money is invested and receiving income from participation in its activities (direct investment ensures ownership of a controlling stake).

In accordance with the accepted international classification foreign investment direct investments include investments as a result of which the investor receives a share in the authorized capital of the enterprise of at least 10%. Acquiring a share in the capital of an enterprise of at least this amount makes it possible to directly participate in the management of the enterprise, in particular, to have a representative on the board of directors. Direct investments allow you to directly influence the invested business.

Portfolio investment – is an investment in securities formed in the form of a portfolio of securities. Portfolio investments represent passive ownership of securities, such as company shares, bonds, etc., and do not require the investor to participate in the operational management of the enterprise that issued the securities.

Unlike direct investments, which aim not just to invest funds in the development of an organization, but also to gain control over its activities, portfolio investments represent passive ownership of securities of various companies that form the investor’s portfolio.

Only in the process of forming a portfolio of securities is a new investment quality with specified characteristics achieved. So, a portfolio of securities is the instrument with which the investor needs the consistency of income under conditions of minimal risk.

The main motive for international portfolio investment is the investor’s desire to invest capital in that country and in such securities in which he will bring maximum profit at permissible levels risk. Portfolio investments can also be considered as a means of protecting funds from inflation and generating speculative income.

9.3. Investment activities of insurance companies, pension funds and other non-bank credit organizations

INVESTMENT COMPANIES AND FUNDS IN THE SECURITIES MARKET

LECTURE 17

A civilized investment process presupposes the presence of a developed capital market infrastructure. One of the leading investment institutions operating in the securities market are investment companies.

Investment company - professional participant stock market, carrying out activities with securities. These activities include determining the terms and preparation of new issues of securities, purchasing securities from issuers for further resale to investors, underwriting placements, and creating subscription syndicates or groups to sell new issues. In addition, to maintain an active secondary market for newly issued securities, the investment company retains a portion of the issue for sale, since it has the right to act as a financial broker through the stock exchange.

To carry out dealer activities, an investment company must have the necessary minimum own capital in the amount of 75 thousand ECU, and for brokerage operations with individuals - 450 thousand ECU; the company's staff must include specialists with appropriate qualification certificates; the company must be registered in government agency and have a license to conduct certain investment activities. The capital adequacy requirement is intended to ensure the necessary financial stability investment company.

The main function of an investment company is underwriting. This concept arose during the formation of marine insurance, when the merchant, as a third party, put his signature on the amount and terms of the risk that he agreed to cover. In the modern understanding, underwriting is a guaranteed (full or partial) acquisition by a stock market operator of an issue of securities during their initial placement at a fixed price. There is no concept of “underwriting” in current Russian legislation. Therefore, for now it is not a legal term, but a special term denoting one of the forms of activity on the stock market. Underwriting is formalized by an issue agreement or an agreement between the issuer and the intermediary, and all controversial issues are decided in accordance with Civil Code RF. The agreement must indicate the volume and timing of the issue redemption from the issuer, but usually there are no restrictions on the forms and methods of use by the underwriter of the purchased securities.

An underwriter is a guarantor of the initial placement of company securities, purchasing them for subsequent resale to private investors and charging for this a certain fee, set as a percentage of the cost of the entire package of securities. The value of the price spread (the difference between the public sale price of a security and the price of its repurchase from the issuer) in international practice ranges from 1 (large, creditworthy company) to 20% (small venture capital company). In addition, the following factors influence the price spread:

Issue size - the larger the issue, the smaller the spread;

Quality of securities - the higher the quality, the lower the spread;

Type of security - for secured bonds it is less than for unsecured debt obligations, then the spread increases from convertible bonds to preferred and, finally, common shares.

The investment company as an underwriter performs the following functions:

Preparation of the issue - development of the issue and assessment of the issuing company, establishing connections between the issuer and key investors;

Distribution - redemption of part or all of the issue amount, sale of securities directly to investors;

Post-market support: support for the security price at secondary market;

Analytical and research support: monitoring the dynamics of the security rate and analyzing the factors influencing it.

Let's consider the following types underwriting:

Underwriting “on the basis of firm commitments”: under the terms of the agreement with the issuer, the underwriter bears firm obligations to repurchase all or part of the issue at fixed prices, i.e., assumes the financial risks of placing securities;

"Best Efforts" Underwriting: The underwriter has no obligation to purchase the undistributed portion of the issue. Financial risks losses associated with non-placement of securities are fully borne by the issuer. The underwriter undertakes to make every effort to place securities, but does not bear financial responsibility for the final result;

Underwriting on an “all or nothing” basis: the agreement with the issuer is terminated if the underwriter fails to place the entire issue;

Contractual underwriting: all price conditions of the issue (issue price of shares from the issuer, spread between this price and the placement price of shares) are established based on negotiations between the issuer and the investment company;

Competitive underwriting: preparation of the issue on a competitive basis is carried out by several investment companies, each of which offers its own price conditions. The issuer selects an underwriter through a competition of applications, usually focusing on the best price and other conditions.

When several investment companies come together to underwrite large issues of securities, an issuing syndicate is formed. The latter is a temporary association of investment companies that, on the principles of profit sharing, organize, place and guarantee the issue of securities.

The issuing syndicate covers a purchase group, including an underwriter (investment company), i.e., the manager of the issuing syndicate, and investment companies - members of the syndicate, as well as a sales group containing companies - financial brokers, placing securities on behalf of the syndicate members.

Companies that are members of the purchasing group undertake obligations to purchase part or all of the issue of securities. Unlike the buying group, members of the selling group act as financial brokers accepting orders from syndicate members for the initial public offering of securities.

In Russia, the underwriting work of investment companies has a number of features:

Due to the uncertainty of the future dynamics of the exchange rate and liquidity of the issuer’s securities, underwriting “based on better conditions"or "with deferred repurchase" (you purchase the issuer's securities as they are sold by the investment company);

Issuers usually work with separate investment companies that are not related to each other, and a significant share of the issue is placed by issuers independently, without the help of financial intermediaries;

Issuers for the initial placement of securities may not attract investment companies, but use stock exchanges.

Underwriting was successfully applied during the issue of Chekhovsky Energomash JSC. The RUB 4 billion issue, registered in May 1995, was fully placed in accordance with preliminary applications by the end of June, with shares worth approximately RUB 2.3 billion. were placed among the underwriters. Since mid-1994, there has been an underwriters' club in Russia. It included financial companies Intrust, Russian Share Capital, Rinaco Plus, Finable, Alfa Capital and Olma. Currently, the club is conducting consulting activities.

Federal Agency for Education

State educational institution

Higher professional education

"St. Petersburg State

University of Engineering and Economics"

Department of Finance and Banking

Discipline report

Stocks and bods market

"Investment companies, their role and functions in the securities market"

Completed by: Gaman E.A.

3rd year student, duration of study 4 years 9 months

group No. 3341 Gradebook No. 33371/04

specialty 060400 - Finance and credit

Teacher: Matveeva N.S.

Job title:

Rating: ________________ Date: ______________________

Signature: __________________________________________

St. Petersburg 2007

INTRODUCTION

Investment institutions are professional participants in the securities market, carrying out their activities with securities as exclusive.

It is investment institutions that are the financial intermediaries that launch the stock market mechanism and carry out the redistribution of monetary resources from those who have funds to those who need additional financial resources for the implementation of commercial projects.

Types of investment institutions: according to Russian legislation, these include: a) financial brokers, b) investment consultants, c) investment companies, d) investment funds.

An investment company - a professional participant in the securities market provides services within the framework of brokerage agreements and agreements trust management. The organization's clients are legal entities and individuals.

Unlike a financial broker, this is a dealer, i.e. entity operating in the securities market not at the expense of the client, but at its own expense. An investment company is a specialized enterprise for: a) organizing and guaranteeing the issue of securities, b) investing in securities, c) buying and selling securities as a dealer.

In Russian practice, a peculiar substitution of concepts has occurred. What we call an investment company is, in American practice, an investment bank. What we call an investment fund is considered an investment company in the practice of the United States and other countries.

On the other hand, in Russian practice they often try to call it an investment bank - financial company, which attracts funds by issuing shares or other means and investing them in a variety of objects - from securities, real estate, land, shares in various companies to agreements on joint activities and objects of art.

An investment company is an association (corporation) that invests capital through direct and portfolio investments and performing some of the functions of commercial banks. Investment companies are represented by holding companies, financial groups and financial companies.

A holding company is a parent company that owns a majority stake in other joint stock companies, called subsidiaries, and specializes in management. A financial holding company is a company in which more than 50% of its capital consists of securities of other issuers and other financial assets.

This company has the right to carry out exclusively investment activities. A financial group is an association of enterprises connected into a single whole, but, unlike a holding company, does not have a parent company specializing in management.

A financial company is a corporation that finances a narrow circle of other corporations selected according to some criterion and does not diversify investments typical of other companies, and, unlike a holding company, does not have controlling stakes in the corporations it finances.

ACTIVITIES OF THE INVESTMENT COMPANY

An investment company (in the Russian sense) has a specific turnover of funds. Its structure (main articles shown) explains well how it works and what its main focus is.

So, the main subject of activity of an investment company (in the Russian sense) is determining the conditions and preparing new issues of securities, purchasing them from issuers in order to then resell the securities to investors, guaranteeing placement, creating subscription syndicates or groups for the sale of new issues . However, just as in Western practice, the activities of an investment company cannot be limited to this. Investors are interested in maintaining an active secondary market for newly issued securities. Therefore, the investment company can retain part of the issue for active trading on the secondary market as a “markt maker” (the investment company also has the right to act as a financial broker through a trading exchange).

At the same time, operations with securities should be the exclusive activity of Russian investment companies.

The emergence of the first Russian investment companies

In Russia since mid-1991. - 1992 there were several large financial structures(VPIK - military-industrial investment company, RINACO - Russian investment joint-stock company, NIPEC - People's Oil Investment and Production Eurasian Corporation, etc.). At the time of their formation, they collected significant for that time money capital(0.8 - 1.2 billion rubles), which in the highly inflationary environment of 1992. (inflation of 2500-2600% per year), with the delay of large-scale privatization until the end of the year and the deep crisis during this period of the Russian securities market, they turned into a rapidly depreciating (25-26 times per year) paper money supply.

The structure of assets and operations of investment companies did not fully comply with the requirements for these financial institutions imposed by Russian legislation as participants in the securities market. The fact is that, both according to the original plan and due to inflationary necessity, these companies had to invest their money not only in securities, but also make direct cash investments in real estate, in the capital of existing enterprises, and, to a greater extent, in short-term commercial projects.

Even this strategy did not lead to tangible results: by the end of 1992. NIPEC and RINACO did not pay dividends, capitalizing them (the possible level did not exceed 50-100% at inflation rates in 1992 of 2500-2600%), WPIC payments on dividends amounted to 8-55% for various categories of shareholders. 10-30% of capital are investment company in 1992 invested in joint ventures, 20-50% was used in trading operations, a certain part was invested in real estate, art, etc.

Thus, the first structures that called themselves investment companies as operating on the Russian market were not, by the nature of their activities, professional participants in the securities market and did not comply with the legal conditions established for them by Russian legislation.

On the other hand, since 1993 In the Russian market, a rapidly growing group of professional financial intermediaries received licenses to operate as investment companies. By the end of 1994, 94% of professional participants in the stock market had such licenses (the vast majority of them were combined with licenses of a financial broker and investment consultant, approximately 4% were purely investment companies).

Features of the investment company in comparison with other investment institutions.

In domestic practice, a model of simultaneous participation of banks has been chosen, brokerage companies, investment companies and funds in professional activity on the securities market. At the same time, banks, in terms of their rights, financial base (amount of capital, diversification of assets and operations with them), personnel composition and material support, are a completely unique participant in this market. At the same time, operations with securities are not the main ones for banks and they largely lose the advantages of specialization.

Since banks and investment companies carry out the same type of operations on the securities market, competition should develop between them for shares of this market.

Banks have advantages in this competition. On their side are factors such as:

a) big financial security and sustainability, diversification of activities (transactions with securities are not exclusive);

b) great opportunities to guarantee the placement of securities;

c) complex settlement and cash services on transactions with securities and other transactions.

The emergence of investment companies with significant authorized capitals, introduction since the beginning of 1994. restrictions on Bank operations with securities, can greatly weaken these advantages of banks.

Underwriting is a basic function of an investment company.

Underwriting (in the meaning accepted in the stock market) is the purchase or guarantee of the purchase of securities in their initial offering for sale to the public.

Underwriter (in the meaning accepted in the stock market) is an investment institution or a group of them that services and guarantees the initial placement of securities, purchasing them for subsequent resale to private investors. In this capacity, he assumes the risks associated with non-placement of securities.

Thus, underwriting of securities (a term universally accepted in international practice) is the main task, the main function of an investment company, as defined by Russian legislative acts.

The functions of an investment company as an underwriter, universally accepted in international practice, are reflected in the following diagram:

INVESTMENT COMPANIES IN THE RUSSIAN SECURITIES MARKET

Largest Russian investment companies

KIT Finance is an independent Russian investment bank providing investment banking and Financial services companies, financial institutions and private investors.

KIT Finance is one of the leaders in the market for the organization, placement and circulation of bonded loans, acting as a leading organizer, underwriter and market maker, paying agent, legal and investment consultant. KIT Finance is the organizer of subfederal, municipal and corporate ruble bond issues, as well as issues of foreign currency debt instruments.

The brokerage business of KIT Finance is represented by KIT Finance (LLC), which conducts operations on the securities market in the interests of Group companies, professional participants and individual investors. KIT Finance is focused on working with financial institutions, is accredited on all major trading platforms and works with all exchange instruments. On this moment KIT Finance is one of the largest brokers in Russia.

KIT Finance has many years of experience in asset management, which is carried out by the management company KIT Finance (OJSC). KIT Finance provides services in the field of investment and strategic development of Russian and foreign corporations, financial and industrial groups and government agencies. The range of services provided by the Bank includes the organization of mergers and acquisitions (M&A), privatization transactions, attraction of investments, project financing, leveraged buy-out and management buy-out, restructuring and pre-sale preparation of enterprises, creation of joint ventures. KIT Finance carries out banking services clients as part of the provision of a full range of investment banking services, which improves quality and creates comfortable conditions for servicing clients. IN banking direction KIT Finance's business includes settlement and cash services, lending and raising funds from clients, Internet acquiring, development of correspondent relations with partner banks, etc.

The group includes an investment bank (KIT Finance Investment bank(OJSC)), brokerage company (KIT Finance (LLC)), management company (KIT Finance (OJSC)), leasing company, non-state pension fund KIT Finance, as well as a subsidiary European investment company and management company in Kazakhstan.

Assets under management – ​​more than 13.5 billion rubles

The Bank's own capital is 5.8 billion rubles (according to IFRS data).

The Bank’s balance sheet currency is over 35.3 billion rubles (according to IFRS data)

The Bank's net profit is over 3 billion rubles (according to IFRS data)

Brokercreditservice Company LLC has been operating since 1995 and occupies a leading position in the Russian stock market. The company provides the following services: Internet trading, asset management, information and analytical support and financial consulting. According to the rating of the National Association of Stock Market Participants (NAUFOR), the Brokercreditservice Company has an individual reliability rating at the level of "AA+" (very high reliability- first level.

record figures for turnover* (at the end of 2006, the company's turnover will be 330 billion dollars)

largest customer base*

the most developed branch network

The group of companies "Brokercreditservice" includes: CJSC "Management company Brokercreditservice" (asset management of mutual funds, non-state pension funds, pension savings Russian citizens); LLC "BCS Consulting" (providing financial consulting services, primarily in the field of attracting investment in the development of Russian enterprises, as well as financial management, in the field of mergers and acquisitions, tax planning and business development); BrokerCreditService (Cyprus) Limited (broker licensed in the European Union; activities: the company provides a wide range of services in the European Union, including transactions with various types financial instruments - brokerage service, depository storage of securities and custodial services, provision of loans for transactions with securities, consulting); Specialized depository LLC "MSD BKS" (activity: accounting and storage of property, as well as rights to securities of mutual investment funds and non-state pension funds, depository services, maintaining registers of mutual fund shareholders); NPF "Russian Pension Fund" (activity: management savings part pensions of citizens of the Russian Federation, voluntary pension insurance of citizens of the Russian Federation); IC "BASTRA" (activity: the company has a license for 35 types of insurance and provides a wide range of services for insurance market Russia); "BCS-IT" (activity: wide range of software development services).

At the end of 2005, the total turnover amounted to 3.22 billion rubles, and the number of company clients was 16,328.

Trends in the activity of investment companies in the securities market

IN Lately There was an increase in trading volumes of investment companies: both stock quotes and the number of clients of brokerage companies grew rapidly. As a result, the total turnover of investment companies for all types of securities in the first half of 2006 amounted to 24.4 trillion rubles, which is 1.75 times more than the same result in 2005. At the same time, the structure of the total turnover of professional participants in the stock market looks like this: about 52% comes from exchange turnover, and 48% from over-the-counter turnover. That is, the total turnover on exchanges for the first time in many years exceeded the turnover of the over-the-counter market.

There are several reasons for this. Leading exchanges have recently been doing a lot to attract companies to their trading platforms and increasing their activity. As a result, many investment companies that previously worked as sub-brokers* entered the exchanges directly and joined the ranks of participants in the organized market. This is due to the fact that the price of entering the stock exchange has dropped significantly over last years, and the former sub-brokers themselves have reached a new level. Next year, this trend should intensify in connection with the regulations being developed by the Federal Financial Markets Service on the reporting of professional participants in over-the-counter transactions. It is planned that from the middle of next year, exchanges will charge a fee for disclosing such information. And in this case, it will simply be cheaper for brokers to conduct transactions through the exchange.

The contraction of the over-the-counter sector was facilitated by a significant reduction in transactions with bills. At the same time, for companies that disclosed their data, the volume of transactions with bills of exchange decreased by 10%. The value is small, within the measurement error. Nevertheless, the trend is obvious. If three years ago almost every investment company carried out transactions with bills of exchange in one volume or another, now the circle of bill operators has decreased significantly. And many leaders in this area are increasingly refocusing on bonds and stocks.

At the same time, the volume of trading in shares among companies that disclosed their data increased by 2.5 times, and in bonds by 1.8 times.

BrokerCreditService Investment Company (BCS) maintains leadership with an ever-increasing margin. The volume of BCS transactions with securities amounted to 5.3 trillion rubles, almost the same as that of the companies that took second and third place - KIT Finance and Troika Dialog Group of Companies. At the same time, BCS and KIT Finance tripled their figures compared to the same period last year. Among the top ten companies, Region Group distinguished itself with the same activity.

Row large companies also showed growth, but their results were lower than the market average. Some companies (Uralsib Capital, Renaissance Group, IFC Metropol) even showed a decrease in turnover in a growing market. But there are also outright failures, when there was a drop in speed by two or three times. This was partly caused by a decline in bond turnover, but companies focused on working with shares also experienced the same setbacks. This confirms the fact that the brokerage market remains very competitive. And the position of market leaders cannot be considered unambiguously stable.

It is worth noting that the total volume of brokerage operations in the first half of 2006 amounted to 21.2 trillion rubles, which is almost seven times more than the volume of dealer operations. Compared to the results of 2005, the gap between brokerage and dealer operations has increased. Companies are increasingly choosing client operations over their own operations, thereby minimizing their market risks.

The increase in the volume of brokerage operations is also associated with an increase in the number of clients. Thus, for companies that disclosed their data, the total number of clients in the first half of the year increased by 1.8 times compared to the same period last year, exceeding 101 thousand. Of these, almost 90 thousand are individuals. At the same time, in the second quarter of 2006, about 20 thousand clients were added, almost 90% of whom were individuals. These indicators - taking into account the overall growth of the market - indicate that a mass investor has entered the market, although he cannot yet ensure growth in gross indicators.

CONCLUSION

So, investment institutions are professional participants in the securities market, carrying out their activities with securities as exclusive.

The main activity of an investment company is determining the conditions and preparing new issues of securities, purchasing them from issuers in order to then resell the securities to investors, guaranteeing placement, creating subscription syndicates or groups for the sale of new issues. Underwriting is a basic function of an investment company. Underwriting (in the meaning accepted in the stock market) is the purchase or guarantee of the purchase of securities in their initial offering for sale to the public.

If we look at the history of the emergence of investment companies, the first structures that called themselves investment companies as operating on the Russian market were not, by the nature of their activities, professional participants in the securities market and did not comply with the legal conditions established for them by Russian legislation. And only much later did investment companies appear, in the full sense of the word.

Since banks and investment companies carry out the same type of operations on the securities market, competition should develop between them for shares of this market.

The leaders of the Russian securities market are such investment companies as IC BrokerCreditService (BCS) (the volume of BCS transactions with securities amounted to 5.3 trillion rubles), KIT Finance and Troika Dialog Group of Companies. If we talk about trends in the activity of investment companies, we can note the following:

slightly more than half of the turnover of investment companies comes from exchange-traded companies;

a downward trend in the volume of transactions with bills of exchange was discovered;

the volume of brokerage operations exceeds the volume of dealer operations.

BIBLIOGRAPHY

1. Federal Law No. 39-FZ dated April 22, 1996 “On the securities market”

2. Makarova S.A. Securities market and stock exchange business. - St. Petersburg: SpetsLit, 2002.

3. Mirkin Ya.I. Securities and the stock market - M., Perspektiva Publishing House, 2000.

4. Golovtsov A., Gaidaev V. Mass involvement. // Kommersant-Dengi-2006.10. - P.15.

5. www. cit-funds. ru

*Subbrokers provide brokerage services to their clients through a broker. The subbroker does not have direct access to the exchange. The sub-broker provides clients with Internet trading services, the provider of which is the broker. A sub-broker is a professional participant in the stock market and, in turn, is himself a client of the broker. Modern technology Internet trading allows you to build the following work scheme: client - sub-broker - broker - exchange.

Good afternoon, dear reader!

I continue the story about the structure of the securities market and its participants. This process involves certain structures, which can be discussed at length and at length. Today I want to discuss who investors are in the stock market and what their functions are. So here we go.

In short, investors are a group of individuals ( law firms, credit organizations, Mutual Fund) or individual, which purchases or owns securities as property. The trading process may involve borrowed or own money. The definition of investors also includes traders involved in trading in the market.

An investor tries to profitably invest money in securities in order to receive good profits in the future.

Classification

Investors are classified into several types:

• for the purpose of investing in securities - strategic, portfolio;
• according to the degree of risk - conservative, moderately aggressive, aggressive, sophisticated, irrational;
• by location – resident and non-resident investor;
• by status - individual, collective, corporate, state.

To understand why they are divided into groups, I propose to consider each classification in more detail.

By investment purpose

Portfolio and strategic market participants differ in their goals and methods of investment.

Strategic

The main goal of a strategic investor is to obtain a controlling stake in order to subsequently acquire ownership of the enterprise. The income from this form of ownership is much greater than from ordinary ownership of papers. Initially acquires 30% of the shares, then becomes the sole owner of the controlling stake.

Briefcase

The tasks of a portfolio participant in the securities market include the formation of a profitable investment portfolio and its further management. He does not need control over the company. All a portfolio investor needs is to receive income from shares.

By risk level

Every investor behaves differently in the market. In this regard, several behavioral strategies are distinguished.

Conservative

This market participant sets the main goal of investment reliability. For him, it is important not so much to get large capital as to save money. Investment object – reliable and liquid assets, such as shares large enterprises(Gazprom, VTB). Investments are long-term, from 2 to 20 years. This passive strategy is advisable during a crisis.

Moderately aggressive

The investor tries to comply with investment portfolio balance, which combines different securities with varying degrees of profitability and reliability. Prefers to keep investments, but at the same time receive maximum income. The investment period ranges from six months to several years. The moderately aggressive type means average profits and low risks.

Aggressive

This participant is a man with nerves of iron. Doesn't matter, reliable investment or not, the main thing is profitability. As a rule, these are traders whose investment period ranges from several minutes to a couple of days. Big risks, but also high income - sometimes up to 400% of net profit per month.

Sophisticated

A sophisticated participant in the financial system aims to obtain maximum income. First they are aggressors, then conservatives, constantly changing roles. Even if there is a clear threat of loss of capital, they still take risks in order to get maximum profit.

Irrational

The most obscure type of investor. He does not have a clear goal, he does not know what income he wants to receive, what risks he is ready to take. He haphazardly buys a large number of securities of different enterprises for any period of time. Absolutely defies logic and does not make informed decisions.

By location

Investors are divided into categories of residents and non-residents.

Residents

A resident is an individual or legal entity that is registered in the territory of a certain state. He completely submits legislative framework of this country.

Non-resident

A non-resident can be an individual or legal entity. Operates in the territory of one state, but is registered and resides in the territory of another.

By status

A participant in the securities market can be either one person or a group of people. Depending on this, investors are divided into several types.

Individuals

Only private funds are invested, the volume of capital investments is small. They make decisions independently, based on their own ideas about movement.

Collective

Collective investors are a group of people, e.g. Insurance companies, mutual funds. They pool money from small investors and go public with large sums. Capital is managed by qualified managers with experience and knowledge, which helps shareholders outperform individuals.

Corporate

This group is represented by large and small non-state companies and firms that invest free money in securities. Investing for them is not their main income, but an additional one.

State

The state, as a rule, does not invest in securities. On the contrary, it issues its own to finance the budget deficit.

The main problems of the Russian securities market and ways to solve them

The Russian securities market has the following problems:

• the legislative system cannot protect all parties to the transaction;
• small share of real capital;
• rules and regulations accounting do not meet international standards;
• No unified system, which would ensure the efficient functioning of the market.

Our market is unattractive for foreign companies.

To solve problems, it is necessary to create a single central depository, in which actions will be unified. We have many depositories with their own rules, the user must choose one. Due to the number of depositories, transparency and availability of information are reduced.

Needs to be reconsidered tax law: enter preferential rates, adjust the legislation regarding the taxation of quick transactions. These measures will significantly increase the stability of the Russian financial market as a whole.

Conclusion

So you found out who investors are in the securities market, how they are classified and what problems they face Russian market. If you liked the material, leave comments and share the article on in social networks. See you again!