Investments global funds in Russia increased by $200 million


Investments global funds in Russia increased for the week ended 20 July, at $197 million, according to a survey by Sberbank CIB, citing EPFR Global. This has contributed to a global trend, and not the growth of demand for Russian assets, specified in the review. So, all emerging markets recorded inflows of $4.8 billion due to the acquisitions of global emerging markets for a total of $5.3 billion, says Sberbank CIB.

The fact that the growth of investment funds in Russia provided by the global trend confirms the structure of the inflow of global funds increased investment of $227 million, while funds focused on Russia, withdrew, or $29.0 million, noted in the review of the investment Bank. Thus, experts say, Russia accounted for $197 million

Apparently, investors are returning to emerging markets from around the world take measures to stimulate economic growth and delay the tightening of monetary policy of the fed, according to analysts Sberbank CIB. “Investors also seem eager to avoid investments in troubled European markets and to secure a more or less decent income in an environment of low interest rates,” the review says.

Chief economist at Eurasian development Bank Yaroslav Lissovolik says that global funds operate on the statistics of the overall group of developing countries at a time as funds focused on Russia monitor the factors to a greater extent from country to country — for Russia, the cause of profit taking and, consequently, the outflow of funds could be a reduction in expectations for further strengthening of the ruble and rising financial markets and downside risks to oil prices. “Further faith in the ruble, investors, apparently, is not so significant. We observed a similar situation with the outflow of investors in the second half of last year, when the ruble also experienced a significant drop after rising in spring,” says Lissovolik.

According to the chief economist of PF Capital” Eugene Nadorshin, those who specialized look at Russia, see the assets of our country is quite expensive. And those who invest globally, are faced with risks in Europe against the background of a British exit from the EU and instability in Turkey, said Nadorshin. “Regarding the increased risks of these countries, Russia seems to be an investor safe haven with quite reasonable rates. However, to say that on the Russian market, something has changed,” said Nadorshin.