VTB investment consultancy clients have experienced notable financial success since the onset of 2024, realizing gains that outpace the MOEX index by a considerable margin. In the first quarter of the year, the ‘Russian Stocks. Active Trading’ portfolio, part of the Advisory PRO model, garnered an impressive 22.46% return with the use of margin trading. Meanwhile, the Advisory Lite portfolio, which focuses on Russian stocks, saw gains of 11.40%. These achievements notably exceeded the MOEX Index by 14.11% and 3.05%, respectively.
A series of strategic decisions by the VTB investment advisory team contributed to this success. These included timely selling of ALROSA shares at the start of the year for a 6.5% profit over five weeks, a speculative purchase of Yandex receipts which led to a 12% return in a single February week and 9.5% in a week during March, closing positions in Sovcombank shares due to a rapid price increase, and selling shares of Severstal ahead of dividend distributions. In addition, VTB experts recommended selling shares of YUGK noting the significant appreciation due to the surge in gold prices.
The ‘Artificial Intelligence’ advisor-robot, a cornerstone of VTB’s digital consulting arsenal and grounded in sophisticated mathematical algorithms, continues to perform exceptionally well. Opting for this strategy paid off for VTB clients, yielding 13.17% in profits in the first quarter and surpassing the total return of the MOEX Index by 4.82%.
The popularity of VTB’s digital assistant, available in the “VTB My Investments” app, is on the rise. Sergey Zakharov of VTB’s financial consulting division highlighted during the Data Fusion-2024 conference that every fourth client using the advisor-robot opts for the ‘Artificial Intelligence’ strategy, drawn by its attractive returns, including the last year’s remarkable 61% profit, outshining the MOEX Index’s total return.
It’s worth noting that VTB’s Advisory Lite service offers portfolio assembly and rebalancing assistance to its clients through mobile app recommendations, while the Advisory Pro service allows for speculative trading or strategic portfolio planning for long-term investments. The ‘advisor-robot’ within the “VTB My Investments” app serves to simplify investment processes, adapting to individual risk tolerance and market expectations.
While the article reports on the success of VTB’s brokerage clients and highlights the performance of different investment strategies, there are additional topics and questions that are relevant and important to consider in understanding and evaluating such achievements. Here are some key points and potential challenges with associated advantages and disadvantages:
Impact of Economic and Political Factors:
Economic and political conditions can significantly influence financial markets and investment returns. For VTB’s clients to outperform the MOEX Index, an understanding of the effects of sanctions, oil prices, and economic policies on Russian equities is crucial. The strength of these factors could either pose a challenge or serve as a boon to investment strategies. How these influences are managed and forecasted by VTB’s advisory team would be of notable significance.
Performance Sustainability:
Achieving high short-term returns is commendable, but the key question for investors is whether such performance is sustainable over the long run. High volatility and the use of margin trading can amplify returns but also increase the risk of substantial losses. Discussing the ability of VTB’s advisory services to manage these risks and whether those high returns can be consistently replicated over longer periods adds a critical dimension.
Advantages:
1. Higher returns: The use of sophisticated strategies like margin trading and advice from the ‘Artificial Intelligence’ advisor-robot have demonstrated the potential for higher returns than the market average.
2. Innovation in services: The ‘VTB My Investments’ app represents a significant technological advancement, bringing convenience and personalized investment advice to clients’ fingertips.
3. Expertise: Professional insights from VTB’s financial consultants appear to be a significant factor in outperforming the market, offering an expert layer of decision-making.
Disadvantages:
1. Risk factor: The use of margin trading and speculative strategies may lead to considerable risks, especially during market downturns.
2. Dependence on technology: Overreliance on algorithms and the AI advisor-robot could potentially ignore subtle market cues that human experience might catch.
3. Market conditions: The specific strategies that led to outperformance in the current period might not be effective under different market conditions, emphasizing the need for adaptability.
For individuals interested in learning more about VTB and their investment services, they can visit the main VTB website. Please note that when visiting external websites, it’s important to ensure that the URL is correct and that you are visiting a secure and official webpage.
In conclusion, while VTB’s brokerage clients have indeed seen impressive returns, investors must consider a multitude of factors, such as economic conditions, sustainability of performance, and associated risks when evaluating these results. Moreover, while digital technologies facilitate investment processes, the need for a balanced approach that integrates technology with human judgment should not be overlooked.
The source of the article is from the blog scimag.news