Nordea to distribute Deutsche UFG funds in Russia
Nordea Bank’s offices in Moscow, St. Petersburg and other Russian cities have started distributing funds offered by Deutsche UFG Capital Management in Russia.
The agreement came into force on August 3, making Deutsche UFG the first fund provider whose products Nordea Bank will distribute on the Russian market.
Andrey Maltsev, deputy chairman of the management board at Nordea Bank, said: “We are launching an investment product range aimed at capital preservation and appreciation. We will base our model on our existing experience in Scandinavian countries and the Baltics.”
Banks remain the main distribution channel for funds in Russia, but only very few Russian banks have distribution channels as part of their model. So far international banks have been more successful at selling Russian mutual funds.
Nordea is one of the 30 largest banks in Russia and is also part of the European Savings Banks Group. Its entry into the Russian fund distribution business marks another push in the development of the mutual fund industry in Russia, which, at less than $4bn, remains insignificant in size compared to its global peers.
Deutsche UFG Capital Management is one of the top 10 players in the Russian asset management industry and the largest independent provider of mutual funds. The product range includes investment funds and discretionary portfolio management for Russian private and institutional clients.
Deutsche Bank acquired parts of UFG Asset Management last November. All other units of UFG AM, namely its public markets hedge funds, private equity funds and real estate funds, as well as UFG Wealth Management, were not included in the deal and remain independent.