Russian funds inflows: the second-highest in 12 months

By Vladimir Kuznetsov, Equity Analyst at Unicredit

Inflows into Russia-dedicated funds and ETFs in the week to 13 January were the second-highest in the past 12 months and totaled $245m, according to EPFR data.

Inflows were stronger only in the week to 21 October, when they exceeded $457m the highest on record. Russian funds report inflows for the tenth straight week (since mid- November). Net inflows for the past 12 months were $2.4bn. GEM and EMEA funds also show net inflows in the first two weeks of 2010.

Our view: As we argued in our 26 November report Don’t miss the party, we believe most foreign investors now have neutral positions or are overweight Russia, but 2009 performance and strong commodities may attract new money in 2010. So far the data supports our view.

We believe the influx of fresh money into Russian assets should provide support for the stock market.

By Vladimir Kuznetsov, Equity Analyst at Unicredit Inflows into Russia-dedicated funds and ETFs in the week to 13 January were the second-highest in the past 12 months and totaled $245m, according to EPFR data. Inflows were stronger only in the week to 21 October, when they exceeded $457m the highest on record. Russian funds report inflows ...