The inflow of funds in investing in Russia funds have dropped by 40%


Investor interest in funds that invest in Russian assets has decreased. For the week ended 14 September, the net inflow of capital in such funds totaled $50.4 million, which is about 40,2% less than the previous week ($us $ 84.1 million), according to Sberbank CIB, citing data from Emerging Portfolio Fund Research (EPFR).

Analyst at Sberbank CIB Cole Axon notes that the structure of the inflow was rather unusual as, along with investing including Russian assets in global funds (+$39.6 million) net inflow of funds fixed and specialized funds focused solely on Russia (+$18.7 million).

“Interestingly, over the last 13 weeks net inflow of funds in the country was observed only four times, the outflow of them at the end of 12 months fell to $269 million,” said Axon.

Passive funds over the week increased its investments to Russia by 0.55% ($65,1 million), active — brought 0,06% of the funds ($14.8 million).

Among the countries BRIXT (Brazil, Russia, India, China, South Africa, Turkey) the most attractive for investors was the South African market: the inflow of funds in the assets of Africa has increased total assets by 0.14% (+$62.4 million). Russia took the second place (+0,13%), Turkey — the third (+0,12%).

In absolute figures the highest inflow of funds was recorded in China, whose assets investors this week invested $157 million (+0,06% of assets). India is the outsider — the net inflow in the respective funds amounted to only $4.5 million.

In General emerging market funds last week a net inflow of funds in the amount of $528 million, which is three times less than the previous week ($1.8 billion).

Source