RUSSIA - Prosperity Capital Management is urging schemes to invest in the fast-growing Russian market and not miss out on the "unparalleled absolute returns available".
It said pension schemes were still reluctant to commit because they viewed Russia as a high-risk investment. But the Russian economy is far more stable than it was under Boris Yeltsin.
Prosperity said the Russian government had pushed through a series of economic and political reforms since Yeltsin’s departure and the economy had not only reached levels last seen before the 1998 crash, it had actually surpassed them.
The fund manager also said that as firms – such as energy giants YUKOSSibneft and Lukoil – grew into world class companies, their corporate governance records would improve.
Prosperity director Mattias Westman said: “Schemes should be looking for long-term, not short-term returns and if they do that, Russia looks very attractive.
“The absolute returns there are very, very good.”
Standard & Poor’s Micropal awards named Prosperity as the world’s best performing fund manager.
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