Russian AMs do better in Q3, but fail to beat Vnesheconombank

Russian asset managers investing pension assets have done better in Q3 than Q2, but are still struggling to beat Vnesheconombank.

Vnesheconombank (VEB) is Russia’s state owned management company that handles the assets of the Pension Fund of the Russian Federation. It follows a conservative strategy, investing primarily in government debt.

Of the 47 investment portfolios of Russian fund managers reviewed by local news sources at the end of Q3, more than half have achieved worse results that VEB.

However, there were still only two portfolios reporting net losses since the start of the year. This paints a positive pictures compared to Q2, when 13 portfolios had experienced losses.

The difference can be attributed largely to the performance of Russia’s equity market. In Q2, the MICEX index had a disastrous run, dropping 8.6%. By the end of last quarter, however, it had recovered 5% and is up 4% year to date.

The average return of the largest fund managers since the start of the year is 8.8%, while by the end of the first half of the year this figure had only reached 5.2%. The current figures beat the annual inflation forecast in the country, which is not expected to rise above 7%.

The leading and bottom positions have not changed much since the previous quarter, however. Allianz Investments’ balance portfolio has achieved top returns of 13.7%, followed by Solid Management (13.2%) and TKB BNP Paribas Investment Partners (12.4%).

The worst results were displayed by Finam Management and Agana, which lost 2.3% and 0.66% respectively (the latter on Agana’s conservative portfolio).

No radical changes have taken place last quarter. Over half the companies have lost out to VEB, whose portfolio has made 8.2% year to date.

Eight of 45 portfolios have lost out to inflation, which stood at 5.2% at the end of September.

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