Russia’s Troika Dialog launches Ucits Russia fund
Troika Dialog Asset Management has launched a Luxembourg-based Ucits umbrella fund, the Troika Dialog Ucits Sicav, with two funds focused on Russia.
The funds will offer international investors access to the Russian equity and bond markets, supported by Sberbank’s and Troika Dialog’s regional expertise and experience.
The Russian Long-Term Capital Appreciation Fund will invest in a diversified portfolio of Russian equities, including blue chips, mid- and small cap stocks. The fund will source the best ideas from the existing strategies, such as the flagship Dobrynia Nikitich fund (launched in 1997) and the small cap Potential fund (launched in 2005) and will capitalise on the team’s strong stock picking capabilities.
The Russian Fixed Income Fund will invest in a portfolio of ruble-denominated sovereign, municipal and corporate bonds with medium to long term duration and high credit quality. The fund will focus on issuers with expected improvement in credit quality and / or rating upgrades and will be similar to Troika’s flagship fixed income Ilya Muromets fund (launched in 1996).
Each fund will be seeded with $50m. Sberbank, Russia’s largest bank, will be the key investor, which committed the money because it believes in the first class asset investment expertise and quality of the merged asset management team as well as long-term growth prospects of the Russian market.
The funds will be managed by the team of experienced investment professionals and will adhere to the same investment principles and follow the same investment process as the rest of the company’s investment products.
Anton Rakhmanov, head of Troika Dialog Asset Management, commented: “Troika Dialog Asset Management has long been a pioneer of the Russian fund market and today we find ourselves leading the way again as we invite international investors to take advantage of Russian growth opportunities. The fact that Sberbank is the key investor shows that both companies are keen to expand their proposition and tap new markets. It also demonstrates our ongoing and long term commitment to the Russian economy and financial markets.”
Troika Dialog Asset Management has $3.3bn of assets currently under management. The new structure will also allow the firm to diversify its client base.