The Perm investment company Finansovy Dom, one of the few surviving Perm participants in the professional stock market Russia. The company, whose beneficiary is Dmitry Rybolovlev, a well-known businessman from Perm, continues to invest in Russian companies and implements a number of investment projects. Yury Gavrilov, Director General of CJSC IC Financial House, spoke about the development of the stock market, investments in Russian companies, projects in the Perm Territory and the company's new strategy.
You have been observing the Russian and Permian stock markets almost from the moment of its formation. Describe what was and what is now. Has the market developed or is it still far from the “adult” stage, by Western standards?
From the "childish" state of the early 90s of the twentieth century, the Russian stock market today has become much "mature". Having gone through a series of financial crises, it has formed into an industry with clear regulation and a large number of professional participants, including international companies operating in Russia.
The maturity of the stock market manifested itself most clearly in 2014-2015. On the Russian economy sanctions hit and a sharp drop in oil prices. However, despite this, the stock market recovered quite easily and continued to develop. And already in December 2015, the yields of sovereign bonds returned to the pre-crisis level - to the region of 4.75% on eight-year bonds denominated in US dollars.
The market infrastructure is developing dynamically. Per last years New investment instruments have been actively introduced into circulation. For example, individual investment accounts- they help investors minimize income tax losses.
- How does the Russian stock market compare to other markets?
In recent years, I have attended many international conferences, trying to find an alternative to the Russian securities market. Characteristics of the Russian stock market have a maximum of four or five emerging economies. It is from the point of view of infrastructure, from the point of view of liquidity, scale and growth potential. Without too much pathos I can say: Russian financial market is one of the leaders in emerging markets ( emerging markets. - "Y-Prikamye").
Who is our competitor? Brazil, Mexico, Turkey, South Africa. They are comparable in size to the Russian market, but local problems associated with the negative balance of the foreign trade account and high level public debt, almost all of our competitors have, and political instability in these countries adds uncertainty about the future.
- And China?
And, of course, China. But even there it is not so simple. In the entire history of the development of the Chinese stock market, of our companies, only Rusal was able to place panda bonds and raise financing from the huge Chinese market. It is very difficult to enter the Chinese market, and getting out is even more difficult.
Therefore, the answer to the first question is very optimistic. Yes, Russia has come a long way since the early 1990s. A developed financial infrastructure has emerged, the basis of which is the MICEX. The largest OJSCs have become truly "blue chips", one of the best among emerging markets. The bonds of our issuers represent the best ratio of risk to return. An indicator such as P/E (price/earnings. - "Y-Prikamye"), on the Russian stock market is now equal to 6.88. In turn, the average debt/EBITDA ratio for the Russian market is 2.2. These are very good odds.
- Continuing the theme: are there any Permian "blue chips" left?
Everything is more complicated with the Permian "blue chips". The consolidation of Permian assets in vertically integrated holdings, which has been going on for several decades, has led to the fact that there are practically no blue chips left in the Perm Territory. You can count on the fingers - very little. These are, for example, Uralkali and Avisma. And this trend, unfortunately, will continue.
Maybe we could somehow protect ourselves in the Perm Territory and make conditions more attractive and improve the investment environment in order to keep these “blue chips”. But it looks like the time has passed for that.
- How have Perm companies - participants of the stock market transformed over the past time?
Business models of investment companies in the 1990s were “sharpened” for income from large-scale regional privatization, but it ended long ago. Everyone had to look for another business model.
The Permian market is becoming more segmented: large federal investment companies come to the Kama region and seriously compete with local investment companies in the retail sector of the investment business.
Perm companies need to find themselves in other segments, offer the best services and services. If they succeed, then they can feel quite comfortable in today's stock market model. I assume that the Perm "boutique" companies that offer services that differ from the standard set of "federal lines" have a good chance of successful work. For example, in the niche of servicing wealthy citizens.
- And how does Financial House IC feel in the current situation?
- "Financial House" for 26 years of history has performed different functions. During the years of privatization, he helped to consolidate assets in the Perm Territory. But even then the company began to position itself as a family-office - such a private, independent organization that manages family savings.
Over the years we have kept our principles. The company operates on the basis of a balanced market strategy, a creative approach to trading, harmoniously combining investment instruments and an adequate perception of risks.
Last year, Financial House expanded its range of services. In fact, from the classic family-office, we began to position ourselves as a boutique for trust management. We focus on customers of the local market, where we are well known.
Despite its low public fame, Financial House has long-term partnerships with almost all market makers Russian market and major players at the European level. Our experience, knowledge and competencies allow us to carry out transactions anywhere in the world.
- Who are these clients?
Mostly wealthy citizens who have a request for personalized service. Such service cannot be afforded by a client with a small account.
- What amount are we talking about?
We imagine a client from 15 million rubles.
- How do you compete with banks?
Investment companies are really helped by lower bank interest rates on deposits. For example, interest rates on ruble deposits decreased by 1.39% over the year (the maximum interest rate on ruble deposits individuals ten largest Russian banks as of June 2017 - 7.79%, as of June 2018 - 6.4%). We invest in fixed income bonds with the same risk, and often with less risk, than in banks. The movement in the rate market allows investment companies to withdraw money from bank deposits and operate on the stock market with unconditional the best conditions. The simplest example: the bonds of the same Sberbank are more profitable than the deposit of Sberbank. The same issuer in different products gives customers different returns.
Investment companies have the following additional options at their disposal: REPO transactions, lending against them, derivatives market, foreign exchange transactions, Eurobonds, bonds in other currencies, transactions with shares, finally. Clients of investment companies receive more services compared to a bank deposit, and at the same time have a higher income than bank deposits.
I will note the service for REPO transactions. It is important precisely as a tool for optimizing the debt burden on the client's business. REPO rates today are much lower than a bank loan (7-8% per annum), which allows the client to significantly reduce debt servicing costs.
- What profitability do clients expect from you? What profitability did you provide to clients in 2017?
The average return on client portfolios under trust management with a conservative strategy in 2017 was 12.67% in rubles and 6.95% in dollars. For comparison: the MICEX index in 2017 fell by 5.5%, and when compared with the yield on bonds, in 2017 the growth in 10-year Treasury amounted to only 3.45%. Thus, we almost doubled the profitability of the risk-free instrument.
A dollar yield of 5–6% per annum is generally accepted as an acceptable result. Due to age, fatigue from stress, clients, as a rule, have the task of saving money.
Are there more clients interested in investing in the stock market in Perm? What are the results of the first half of 2018 in terms of trust management?
Permians are actively considering other options for saving their money, in addition to bank deposit. So, for the first half of 2018, our client base increased by 50% from the indicators approved in the business plan.
As for the results, over the six months of this year, the assets of private clients under trust management in the securities market increased by 27.4%. Compared to the first half of 2017, the assets of individuals increased by 221%. And this is a very good result.
You said that the key product of the Financial House is trust management. The company manages the assets of Dmitry Rybolovlev, a businessman and philanthropist. Doesn't this connection prevent you from being an independent trustee?
Having such a beneficiary is our competitive advantage. This speaks of financial stability and reliability of our company. "Financial House" has come a long way with him. Moreover, we continue to invest cash shareholder in the purchase of promising Russian companies.
The presence of such a beneficiary is, in fact, a hedging credit risks. Clients, coming to a small company, should always be cautious: what if the shareholder goes bankrupt, and what if problems arise, as a result of which the assets will be blocked. Such risks for "Financial House" are zero.
For local investment companies to have such a shareholder is a unique situation. Clients, as a rule, go to large companies for reliability, and we can provide the same level of comfort and reliability, working in global markets and being a Perm company.
Interviewed by Vyacheslav Sukhanov
Financial House Investment Company is the oldest financial institution and one of the most dynamically developing such firms in the Western Urals, uniting a wide range of investment services. The investment company "Financial House" was registered in Perm on July 1, 1992, the first license for the right to operate in the securities market as investment company was received on December 23, 1992.
The investment direction presented by IC "Financial House" is one of the most important in the company's activities. The company provides brokerage services for transactions with all types of securities of Russian issuers, trust management securities.
Client business is one of the main components of the activity of a team of professionals who create the most convenient conditions for investing in securities of Russian joint-stock companies. In our work, we constantly follow the basic principle - to focus on working with each client.
In the national rating of professional market participants compiled by the NAUFOR association, the company is classified as a reliability category - BB. In May 2003 CJSC Investment Company "Financial House" became the winner of the national competition "Elite of the stock market 2002" in the nomination "Promissory note market company".
The company is able to develop and successfully implement projects to attract long-term investments for Russian enterprises by investing in real estate under construction.
With respect to private investment, the company takes a conservative view and offers individual clients personal advice. A professional manager participates in the development of the client's investment strategy, in the formation of a portfolio, determining the amount of necessary funds, and also monitors the status of the client's account and provides analytical data and recommendations on the current market situation.
CLOSED JOINT STOCK COMPANY "INVESTMENT COMPANY "FINANCOVY DOM"
Estimated goods and services, according to OKPD:
| OGRN | 1067746626090 |
|---|---|
| TIN | 7743596611 |
| OKPO | 95569027 |
| OKATO | 45277565000 |
| Date of registration | May 25, 2006 |
| Registrar | Interdistrict Inspectorate of the Federal Tax Service No. 46 in MOSCOW |
| Ownership type | Private property |
| Organizational and legal form | Closed joint-stock companies |
| Revenues for 2018 | 0 rub. |
| Expenses for 2018 | 0 rub. |
| Authorized capital | 10 000 rub. |
| CEO | Kovalkov Oleg Naibovich |
CJSC "IC "FINANCIAL HOUSE", Moscow, date of registration - May 25, 2006, registrar - Interdistrict Inspectorate of the Federal Tax Service No. 46 for MOSCOW. Full official name - CLOSED JOINT STOCK COMPANY "INVESTMENT COMPANY "FINANCOVY DOM". The organization was assigned PSRN 1067746626090 and TIN 7743596611. Legal address: 125130, MOSCOW, st. KLARY TSETKIN, 29. The main activity is: "Activities of holding companies in the field of financial intermediation". The company is also registered in such categories as: "Other wholesale trade", "Construction of buildings and structures". General Director - Kovalkov Oleg Naibovich. Organizational and legal form (OPF) CJSC "IC" FINANSOVY DOM" - closed joint-stock companies. Ownership type - private property.
Paid organization CJSC "IK" FINANSOVY DOM"(TIN 7743596611) taxes and fees for 2018, according to the Federal Tax Service:
| value added tax | 0 rub. |
|---|---|
| income tax | 0 rub. |
| Insurance and other contributions for mandatory pension insurance credited to Pension Fund Russian Federation | 0 rub. |
| Corporate property tax | 0 rub. |
| NON-TAX INCOME administered by the tax authorities | 0 rub. |
| Tax levied in connection with the application of the simplified taxation system | 0 rub. |
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