By Ivan Anderzhanov in Moscow
Russian and CIS equity funds have pulled in $450m net in the week to October 21 which is the highest level since data provider EPFR started tracking funds in early 2002.
The intake for Russian funds even exceeded flows to China ($182m) and Brazilian funds ($387m).
All emerging funds registered total inflows of $4.8 bn, which was up from the previous week’s total of $4bn.
A research note from UniCredit suggested increased flows could further catalyse the Russian market, which has been the best global performer year to date.
The note said: "We believe that if inflows continue at the current rate, their effect could outweigh any short-term negative news or weaker oil prices, and we would recommend buying on any corrections."
Emergingmarkets.me understands that several new fund launches are underway from new and existing firms to capitalise on the renewed interest in Russia. Prosperity Capital is currently setting up its latest vehicle to target restructurings and consolidation opportunities in the small to medium tier.
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