The development of non-state pension funds – now they have new opportunities
Since February 2019, non-state pension funds (NPFs) can invest in companies at the stage of their initial public offering (IPO). In general, this is a positive signal – because of sanctions, large foreign funds are trying to avoid Russian firms. And with business angels, things are not so simple: in the past five years, they have become much smaller.
At the same time, in the amendments to the position of the Bank of Russia, lies a number of restrictions for APFs. So, the total value of the company’s shares must be at least 50 billion rubles.
In turn, only five percent of these securities may be available to funds. The issuer must have the appropriate rating level and work with one of the Russian stock exchanges.
In general, it is worth noting the second point: the acquisition of no more than 5% of all shares of one company is a good rule since it makes it impossible to invest in just one company. Now NPF, for competent investments, will analyze all offers that appear on the market. But on this positive from changes in legislation ends.
Development of non-state pension funds mean more risky investments
In general, the law has changed, which made it impossible to invest pension funds in assets with high levels of risk. NPFs could not finance startups at the level of idea and seeding. At the moment, the funds also do not have such an opportunity: the appropriate organizations should deal with venture investments. The management of such funds realizes that, at best, three out of ten startups will survive – and there is no point in demanding a refund from a failed company. At the same time, firms remaining in the market will make a profit that is more than 10 times higher than investments.
Pension money is not meant for risk. People who for many years trust NPF funds, prefer guarantees of receiving money in old age. Consequently, low-risk assets are what the average investor in the APF needs.
Innovations in legislation will help funds diversify portfolios, investing in assets with medium risk. But, the trouble is, Fin Tech – startups are absent among those who want to hold an IPO in Russia.
In 2018, not a single company wanted to conduct an initial offer of its securities at Russian sites. The IPO procedure is associated with complete openness and transparency – when all the beneficiaries of the company are exposed to public display. In general, medium and large businesses are not seen in tax frauds, but he still has something to hide. The company, which will appear on the IPO, risks falling under US sanctions. And such problems do not need anyone.
It is expected that in 2019 three companies will conduct an IPO in Russia. Among them, as expected, there is not a single Fin Tech startup.