Why we are significantly overweight Russia

ON RUSSIA

In 2012, our confidence in the Russian market has grown, and, from a stock-picking perspective, this could be an interesting inflection point for a market that suffered from poor sentiment in 2011.

We have moved to a significant overweight position in Russia, which now accounts for around three-quarters of the fund. There are several reasons for this, including the increased stability of the political landscape after the March elections. The economy is also accelerating, driven by household consumption and investment, inflation and unemployment are sharply down, and government and household debt levels are very low. Valuations are at depressed levels with a great deal of pessimism already priced in. Fears about a global slowdown, which created an enormous level of risk aversion ...