Russian consumer stocks are set to boom but commodities are unlikely to repeat last year’s doubling in value, says JP Morgan Fleming Russian securities investment trust manager Oleg Biryulyov.The trust rose by 103 per cent in 2005 but Biryulyov says many Russian funds benefited from pessimistic oil price predictions, which were exceeded by over 50 per cent on average. Biryulyov’s fund is underweight in commodities and does not hold Gazprom, the stock linked to the Ukrainian gas crisis, which will make up around 40 per cent of the Russian index when it opens to foreign investors this quarter. Instead, he is concentrating on financials such as Sberbank Rossii, Russia’s biggest consumer bank, internet provider RBC Information and healthcare provider OAO Pharmacy Chain in an effort to gain exposure to the growth of the Russian middle class and the rise in consumerism. Biryulyov takes a three-year view on stocks and says a 100 per cent return on each of his consumer stocks is possible over this horizon, helped by a predicted 10 per cent rise in the currency and 5 to 10 per cent GDP growth this year. He says: “Markets have probably overextended themselves as a result of the oil success and it is not fair to expect similar returns from commodities this year. But consumer stocks should benefit massively from the rise of the consumer over the next three years and the fund is positioned to take advantage of this.”
Rathbones has appointed James Maltin as investment director to manage private client portfolios.
Rathbones has appointed James Maltin as an investment director to manage its private client portfolios.
Several leading industry experts expect the Government to reject Lord Turner’s National Pensions Savings Scheme and focus on reforming the state pension system. Fabian Society research director Richard Brooks says a huge new entity which embodies automatic enrolment at a national level is too big a task and the Government would be reluctant to manage […]
High-street lenders are set to boost equity-release confidence, says Guy Anker
By Fiona Tait, Pensions Specialist Ros Altmann reportedly hoped for more product innovation following pension freedom¹ and, according to one poll, 66 per cent of advisers also believe that providers should be doing more². This article considers whether there is a real client need for new products, or whether we should be focusing our attention on efficient delivery […]
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