Russia’s Nomos Bank to launch new foreign fund range
Nomos Bank Asset Management is planning to launch a range of new products for Russian investors to access the foreign market.
The firm’s CIO Sergey Grigorian says the firm plans to add six or seven new funds to its range, investing in markets outside Russia. The aim is to provide better diversification opportunities to Russian investors.
Grigoryan recently joined Nomos Bank as CIO, after leaving his position at Pioneer Investments in Russia. In February, Pioneer announced the transfer of all of its assets in Russia to TKB BNP Paribas Investment Partners.
Transferring his work experience with a foreign fund provider in Russia to his new role, he is keen to offer local investors new options to invest in global markets and diversify their asset bases from the domestic economy.
Currently, the firm offers only two investment vehicles investing in foreign markets, both passive. One is a gold fund, a popular asset class with Russian clients, and the other an emerging market equity fund tracking the MSCI emerging markets index.
The new launches will include an active global dividend equity fund, the first active product in the foreign investments range.
All the other new funds will be passive, tracking global indices of various asset classes, including equities, regional bonds, commodities and real estate.
“For a foreign investor, allocation to Russia raises the risk profile of his portfolio. For a Russian investor, adding foreign assets to his portfolio makes it less risky,” Grigorian explains.
On the equity market, his preference is for US mega-large cap equities included in the S&P 100 index. When it comes to bonds, he prefers quality issuers of corporate bonds in emerging markets.
As for the real estate market, he believes Russian investors would do well to allocate to select properties in Spain, especially in the south of the country, where prices have dropped 50%-70% from their maximum values.
Nomos Bank is the eighth largest banking group in Russia by total assets and the second largest privately-owned Russian universal bank, with total assets of RUB700bn (€17.4bn, end of June).
Its asset management division has been ranked fourth by Investfunds according to total inflows attracted in the first eight months of the year, totalling RUB103m.