TKB BNP Paribas Investment Partners has topped the year to date performance rating of Russian equity funds without a sector focus with its Promising Investments fund.
Russian asset managers investing pension assets have done better in Q3 than Q2, but are still struggling to beat Vnesheconombank.
BNP Paribas may be looking to expand further into the Russian market by partnering up with local financial company Aton Capital, according to local press reports.
Wage growth in Russia, prompted by the country’s recent accession to the World Trade Organisation, is boosting consumer demand, making the consumer sector an attractive investment opportunity.
Equity funds managed by TKB BNP Paribas Investment Partners in Russia has been doing well this year. They keep topping the fund rankings put together by mutual fund information platform Investfunds.
A drop in earnings at over two thirds of Russian asset managers so far this year is likely to trigger an increase in M&A among boutiques, managers say, adding it would benefit the market, even if progress is slow.
Sberbank Group’s private banking department has made three new appointments to its team in an effort to strengthen this new area of business. Elena Shilina, head of the Sberbank Group’s private banking department, said “new, significant appointments will follow.”
In the first seven months of the year four of TKB BNP Paribas Investment Partners’ Russian equity funds have shown the best returns among all equity funds on the Russian market without a sector focus.
TKB BNP Paribas Investment Partners’ Russian utilities fund has achieved top performance last month among all open-ended mutual funds in Russia, according to Investfunds’ July rankings.
The Russian Ministry of Finance and the Moscow International Financial Centre working group are preparing a number of legislative changes in the hope to increase interest in the Russian mutual fund industry among local investors. Keen to diversify the national gross domestic product away from energy and oil, it is turning its attention to the financial industry.