S&P said the benchmark of Russia’s Trading System, RTS, was outrunning stocks of Unit Funds in 76 percent of all cases in the first nine months of this year.
Photo: Grigoriy Sobchenko
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Russia’s Investment Funds Move in Line with Western Counterparts
Similar to developed markets, the better part of stocks of Russia’s Unit Funds are dragging behind RTS benchmark, Standard & Poor’s said in the Friday report. The reasons of this retard are objective, ranging from overhead costs of asset management companies to material share of ready money.
S&P said the benchmark of Russia’s Trading System, RTS, was outrunning stocks of Unit Funds in 76 percent of all cases in the first nine months of this year. Of actively managed 17 Unit Funds, 13 lost to RTS in pace in the recent five years (76 percent). In the last three years, RTS outran 13 of 25 Unit Funds (52 percent).
As a rule, indices show better performance on emerging markets. The fees due to managers should be taken into account as well. In Unit Funds, it is 3 percent of the net asset worth on average, i.e. the funds have to outplay 3 percent in addition, said Alfa Capital General Director Mikhail Khabarov.
The structure of Russia’s indices, including RTS, is in line with the structure of country’s Unit Funds only in the last year and a half. Previously, the share of certain stocks in indices didn't matter at all, while today’s ceiling is 15 percent (similar to Open-End Unit Funds and Interval Unit Funds).
And last but not least, in any Unit Fund, there is money that couldn’t be promptly placed via stocks to compete with indices, said Maxim Kapitan, senior analyst of Management Center.
www.kommersant.com
All the Article in Russian as of Nov. 20, 2006
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