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Japanese Bank Creates RTS Fund
The Japanese investment bank Nomura has registered the Next Fund Russia RTS Linked Traded Fund, according to the website of the Osaka stock exchange. The new fund will have capital of $50 million. It is to be listed on July 29 with between 15 million and 25 million shares. The new exchange-traded fund will have the same structure as the index that it is based on and its income will be directly dependent on the dynamics of the index. There are 46 indexed funds registered in Russia. This is the first foreign fund. Since the beginning of the year, funds structures around the RTS index have lost 7-14 percent, and MICEX-based funds are down 11-16 percent.
In spite of the negative income of Russian indexed funds in recent months, experts say that Nomura has chosen the right time to enter the market. “Entering a falling market is very beneficial because it allows a company to show a good income, directly tied to the growth of the market, in the long term,” observed KIT Fortis Investments general director Vladimir Kirillov.
The Russian indexes are based on electricity and oil. Ninety percent of their shares are from those sectors. With 50 companies listed on the RTS index, 52 percent of its capitalization is from oil companies. Only two of the 30 companies on the Dow Jones index are oil companies. Nomura is likely to earn a high income from its fund because of the rapid growth of energy and oil prices.
www.kommersant.com
All the Article in Russian as of July 16, 2008
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