HSBC Investments has launched a HSBC GIF Russia Equity, which is managed by Halbis, the active management business the HSBC Group.
The new HSBC GIF Russia Equity fund holds a concentrated portfolio of 20-30 stocks which could include locally-listed Russian equities, American depository receipts and global depository receipts. The majority of assets are invested in large liquid blue chip stocks though up to a third of the portfolio could be invested in mid cap companies.
Douglas Helfer, lead manager of HSBC GIF Russia Equity, said: Over the past few years, Russian stocks have delivered a good return. However, despite their rapid rise, Russian equities still remain attractively valued and amongst the cheapest of the emerging markets.
Russian equities are trading on a 2008 consensus price earnings ratio of 10.5 times, compared to the broader global emerging markets universe of 13 times. At the same time, corporate profits continue to grow at a fast pace, particularly in the consumer and finance sectors, where growth is more than 30%.