Art of investments


VTB Capital IM Russia & CIS Fixed Income UCITS Fund

Investment Objectives

The investment objective is to achieve medium/long-term capital appreciation by investing in a portfolio of Russian and CIS fixed income instruments, denominated in local and international currencies. Investments may include issuers incorporated outside of Russia or the CIS whose operations or assets are concentrated in Russia or the CIS. The Investment Team sees the financial markets of Russia and the CIS as still underdeveloped, which makes them inefficient relative to developed markets and allows for a significant improvement of the risk-return trade-off in the long run.

Investment Strategy

The Fund is actively managed, having an annual portfolio turnover of 50-200% with average position holding period of 3-12 months. Currency allocation is based on proprietary in-house fundamental research. The decision on target portfolio duration is based on the anticipated direction of interest rates and liquidity conditions supported by our macroeconomic research. The average credit quality of the Fund’s portfolio is a result of the Investment Team’s general perception regarding the attractiveness of Russia & CIS credit risk, given the stage of the economic cycle. Having set the portfolio target duration & credit quality, the Investment Team selects securities offering the best possible trade-off in terms of market credit spread versus credit quality in strict compliance with an internal limit system.

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