Managers make state-run plays amid Russian volatility

Managers still adding to Russian exposure despite huge falls, focusing on stronger state-run companies and telecommunications amid volatility

Managers are still adding Russian exposure to portfolios, focusing on areas like state-run companies and telecoms to counter current volatility. This is against a background of major losses in the region, with the median Eastern Europe offering down almost 24% over three months to end August, according to S&P figures. Within this, Russia was the worst affected market, with falls in the oil price, a government probe into steel company Mechel and the conflict with Georgia all dragging the market down. The S&P/IFCG Russia Index lost 33.3% over the three-month period to the end of August....