Alexander Beskrovny, director of the corporate investments control department of the Russian Federal Service for Financial Markets
Photo: Alexey Myakishev
| Other Photos |
 |
|
 |
All-Foreign Mutual Funds Coming Soon
A new type of mutual fund may soon appear on the collective investment market. It will contain exclusively foreign securities. If the Federal Financial Markets Service approves the necessary changes to legislation, management companies could diversify their holdings and increase their incomes. The idea originated on the market and will be discussed by the regulator today.
Current legislation allows mutual funds to invest in foreign securities but, in practice, the complicated procedure for doing so is prohibitive. Last month, the FFMS approved an order equalizing the requirements for the classification of Russian and foreign securities. After that order is registered by the Justice Ministry, the procedure for buying foreign securities will be significantly simplified.
The FFMS feels that management companies can start creating funds made up of 20 percent foreign securities, with the balance in Russian depositary notes. On the market, they see more attraction in fully foreign funds. “In Russia now,” commented Uralsib's Alexander Golovtsov, “there are three or four sectors that can be effectively invested in. If it becomes possible to invest more than 20 percent in Western securities, that selection of sectors will grow to two dozen.” It will also allow investors to continue to earn when the Russian market is in a downturn. The RTS index has risen 12 percent since the beginning of the year, while the Chinese Composite has risen 87 percent, and the Brazilian Bovespa 35 percent.
www.kommersant.com
All the Article in Russian as of Nov. 28, 2007
|
|
|
