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Global Banks to Make a Move on MICEX and RTS
UBS Securities is preparing to offer stocks of its investment funds to the Russian market. However, Russian banks do not view foreigners as strong rivals. They believe securities of foreign investment funds are going to be primarily used to diversify portfolios of Russia investors.
UBS is planning to take its securities to the Russian market, Marlen Manasov told Kommersant Wednesday. “We would like to give our Russian clients an opportunity to invest in assets of our funds which are listed at trading floors abroad,” he said. UBS is going to start with stocks of ten investment funds.
Global banks will become the first foreign issuers to float their securities in Russia after the Federal Financial Markets Service drafted a law allowing foreign securities to the domestic market. Head of the Parliament’s Banking Committee Vladislav Reznik says the bill will be adopted soon.
Market watchers say that UBS’s offer will appeal to Russian investors who will be using securities of foreign funds to diversify their own portfolios. “This will let Russian investors diversify their investments which are now 100 percent local,” said Vladimir Kirillov, director general of investment firm KIT.
Russian management companies believe that Western investment banks have chances to occupy 10 to 15 percent of the collective investments market which is worth an estimated $30 billion. “As for private investors, I think they will consider it as something exotic,” Mr. Kirillov told Kommersant.
Experts are sure that the Russian market will not be rocked by the coming of foreign securities. “Investment banks have come here to book a place on the Russian market for 10-15 years,” said Alfa Capital director general Mikhail Khabarov. “By this time our stock market will change dramatically and Western funds may become popular after all.”
www.kommersant.com
All the Article in Russian as of Jan. 31, 2008
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