Content creators are transitioning into strategists
In Russia, a new investment trend has emerged, known as Author Funds. These collective investment schemes are based on the investment strategies of influential opinion leaders, often referred to as “authors”. These funds pool investors’ capital and allocate it in accordance with the strategies publicly promoted or used by these opinion leaders.
How Author Funds Work
Opinion leaders or influential investors create strategies or portfolios, which are then collectively financed by the investors through these Author Funds. Investors entrust their capital under the belief that the opinion leaders’ market insights and expertise will generate better returns. The fund managers or authors may routinely share their investment views and rationale publicly, often through investment blogs or social media, attracting investors who want to replicate their strategy.
Regulations and Author Funds
Investment bloggers acting as opinion leaders can function as “authors” of these funds, but their activities are subject to Russian financial and securities laws regulating collective investment. Any agreements with authors, including bloggers who lend their investment strategy or analysis to a fund, are formalized through contracts specifying the rights to use and reproduce their works (investment analyses, strategy publications). Legal regulations ensure transparency and compliance with investor protection norms. The investment advice or strategy must be clearly represented, and authors/bloggers entering such funds need authorization and must adhere to applicable financial disclosure and anti-fraud rules.
The Launch of Author Funds
Author funds were launched in April 2025 by Moscow Exchange and Alpha Capital Management. Currently, there are four author funds in existence. Two leaders among the authors of these funds are Eugene Kogan and Nazer Shchetinin, based on the number of their Telegram channel subscribers. The strategies for these funds were created by private investors who gained popularity, including through their Telegram channels.
The Future of Author Funds
While the success of author funds is still in its infancy, experts believe that they could "breathe new life" into the collective investment market. However, concerns about the potential risks associated with relying on the investment advice of bloggers remain. It's unclear what will happen if bloggers manage poorly, according to Kirill Kosminsky, head of the Association of Investment Platforms. Despite these concerns, many believe that author funds provide a ready-made infrastructure for bloggers and their followers to avoid "info-charlatanism".
In summary, Author Funds operate by pooling capital guided by investment strategies of opinion leaders, including bloggers, whose strategies act as the fund’s blueprint. The relationship is regulated by Russian law through formal agreements that govern usage of authors’ content and strategies, ensuring compliance with financial and copyright regulations. The exact regulatory details would also intersect with broader Russian financial market regulations on collective investments and advertising standards for financial advice.
- Investors intriguingly finance their capital through Author Funds, relying on the investment strategies and market insights of influential opinion leaders.
- The emergence of Author Funds, guided by the strategies of bloggers and investment professionals, could potentially revolutionize the collective investment market.
