VTB Capital Launches Russia and CIS-Focused Funds

VTB Capital Investment Management, the investment management business of VTB Capital, VTB Group‘s investment arm has launched two new funds. VTB Capital Russia & CIS Equity Fund and VTB Capital Russia & CIS Fixed Income Fund will both be focused on Russian and CIS markets.

PRESS RELEASE

VTB Capital Investment Management, the investment management business of VTB Capital, VTB Group investment arm, announces the launch of the two new funds: VTB Capital Russia & CIS Equity Fund and VTB Capital Russia & CIS Fixed Income Fund, focused on Russian and CIS markets.

The funds will give an opportunity to international qualified institutional and private investors’ access to the Russian and CIS equity and bond markets, supported by VTB Capital Investment Management regional expertise and experience.

VTB Capital Russia & CIS Equity Fund’s objective is to achieve capital growth by investing in a portfolio of Russian and CIS securities. The fund generally invests about 70% of its assets in large cap, liquid Russian and CIS stocks while the remainder may be invested in other high quality Russian and CIS companies as well as small cap stocks. Investments may include entities incorporated outside Russia and/or the CIS whose operations and/or assets are concentrated in Russia and/or the CIS. The fund will capitalise on the advisory team’s securities strong research capabilities.

VTB Capital Russia & CIS Fixed Income Fund’s objective is to achieve medium / long-term capital appreciation by investing in a portfolio of Russian and CIS fixed income and convertible securities. Investments may include issuers incorporated outside of Russia and/or the CIS whose operations and/or assets are concentrated in Russia and/or the CIS. Both funds are denominated in US dollars.

The funds will be advised by the team of experienced investment professionals and will adhere to the same investment principles as the rest of the VTB Capital Investment Management business’s products.

Analytics of VTB Capital Investment Management believes that emerging markets and Russia and CIS especially provide an attractive investment proposition for investors. There are a great number of undervalued companies that enjoy steady demand for output and have the potential for profit growth in the 15%-20% range.

Vladimir Potapov, Global Head of Portfolio Management at VTB Capital Investment Management, said: “VTB Capital Investment Management has become one of the leading asset managers in CIS having the largest Russian institutional firms along with wealthy individuals and corporations as clients. Today we invite international investors to take advantage of Russia and CIS growth opportunities. Our experience and profound regional expertise allows our clients to gain advantage investing with us in Russia and CIS.”

VTB Capital Investment Management is one of the key business divisions of VTB Capital, VTB Group investment arm. This enables us to use the international platform and experience of VTB Capital’s experts, bringing an unambiguous advantage to existing and potential clients, and making it possible to provide a wide range of investment solutions for individual and institutional investors.

Our main offerings include open-ended unit investment funds, discretionary managed accounts for high net worth individuals and financial institutions, including money of pension funds, insurance companies, endowment funds of nonprofit organizations and money of indemnification funds of self-regulating organization. We are also engaged in management of venture funds, private equity and hedge funds.

VTB Capital , the Investment Business of VTB Group, is one of the three strategic business arms of VTB Group, along with the corporate and retail businesses. Since its foundation in 2008, VTB Capital has taken part in more than 235 ECM and DCM deals, which were instrumental in attracting USD 96.3bn worth of investments to Russia and CIS.
VTB Capital offers a full range of investment banking products and services to Russian and international clients, focusing on arranging operations in the debt, equity, global commodities markets, developing investment and asset management, advising clients on M&A and ECM deals in Russia and abroad. VTB Capital operates in Moscow, London, Singapore, Dubai, Hong Kong, New York, Paris and Vienna, with headquarters in Moscow.
VTB Capital holds top positions in the debt and equity capital markets in Russia and CIS according to the league tables for 2011 by Dealogic and Bloomberg. In 2011 VTB Capital research team was ranked #1 in Thomson Reuters Extel Survey and Institutional Investor All-Russia Investor Survey.

This press-release does not constitute an offer to the public or an advertisement of securities in the Russian Federation and/or CIS, is not an offer or an invitation to make offers, to purchase securities in the Russian Federation and/or |CIS and must not be passed on to third parties or otherwise made publicly available in the Russian Federation and/or CIS.