How To Invest In Russia

[IP Newcomer]

How can I invest in Russia? I know that Gazprom has some ADRs listed in London and the JP Morgan Investment Trust is talked about a lot, but are there other options that people could suggest?

[macbeth79]

http://en.wikipedia.org/wiki/Contrarian_investing

That is a good way of looking at it, but it could get a lot worse, and that would make shares even cheaper.

[R K]

Some NYSE listed funds and ETFs here

http://stockcharts.com/symsearch/index.html?russia

I've not checked if/how they're available in UK.

Meb Faber (Cambrian) is a small US investment manager and has a global value ETF which isn't just Russia but screens for global value (based on CAPEs I suspect) and includes some Russia equities. Link here:=

http://cambriafunds.com/gval/

You could check out the Hargreaves Lansdown site and see what they have

https://www.hl.co.uk/shares/search-for-investments?stock_search_input=Russia&x=0&y=0&category_list=CEHGINOPW

These are NOT recommendations of course. DYOR etc. and be aware that there may be a currency/confiscation risk, high volatilty etc as well as potential longer term mean reversion to more normal valuations which could take several or more years.

[wherebee]

Some NYSE listed funds and ETFs here

http://stockcharts.com/symsearch/index.html?russia

I've not checked if/how they're available in UK.

Meb Faber (Cambrian) is a small US investment manager and has a global value ETF which isn't just Russia but screens for global value (based on CAPEs I suspect) and includes some Russia equities. Link here:=

http://cambriafunds.com/gval/

You could check out the Hargreaves Lansdown site and see what they have

https://www.hl.co.uk/shares/search-for-investments?stock_search_input=Russia&x=0&y=0&category_list=CEHGINOPW

These are NOT recommendations of course. DYOR etc. and be aware that there may be a currency/confiscation risk, high volatilty etc as well as potential longer term mean reversion to more normal valuations which could take several or more years.

I like ETFs for this sort of thing - a bag of underlying assets and tend to be pretty liquid. Of course, if you get the direction of travel wrong you can take a major bath but DYOR, of course.

[IP Newcomer]

Thank you everyone, I will look into ETFs.

I'm still tempted by Gazprom, although I don't like the fact that they dislike dividends.

But it all seems to be quietening down, so I better get a move on while the cannon is still firing.

[Killer Bunny]

RSX/J look as if they are bottoming

[Will!]

Petropavlovsk (gold and iron ore miner, large but possibly renegotiable debts) if you're feeling brave.

http://www.bloomberg.com/profiles/companies/POG:LN-petropavlovsk-plc

DOI: I'm in.

[Will!]

Putin confiscating assets held by foreigners has to be a big risk now.

[porca misèria]

It's looking like serious value now: like investing in UK equities when the FTSE was at or below 4000. Any suggestions for Russian investments that might be in good shape (and even benefit from the current troubles) but which have been swept down by the tide?

Hmmmm ....

[Will!]

I think gold miners. A product not affected by devaluation of the rouble and likely to benefit from the Fed's continuing loose monetary policy. (Also I think the ECB will do QE.)

[Venger]

It's looking like serious value now: like investing in UK equities when the FTSE was at or below 4000. Any suggestions for Russian investments that might be in good shape (and even benefit from the current troubles) but which have been swept down by the tide?

Hmmmm ....

Not yet. I am asking myself similar questions, but am not going to rush to make an investment decision. I lean toward the politically important energy companies, and financial/banks, or institutions that count for prestige, but I haven't yet done enough study, and some are opaque anyway, and I am still unclear about sanctions. Also I would like to see many reforms anyway, and consider the risks high. What is value, and what is massively overvalued?

My concerns with Russia is companies carry debt, get taken over by their creditors, and price crashed overnight etc (miners etc). If I were to invest it would be on the lower-side (much slower growth) of the investing risk equation, looking at companies that have a more predictable source and flow of income, and strong(er) management.

With that in mind, I would be looking at something like how to invest directly in MOEX (Moscow Exchange) - or others without a specialist fund? (At least MOEX is up there on what I consider Russia's 'prestige' importance rating (but doesn't make it invulnerable or anything), and I expect Russia will be seeking a lot of inward investment in years ahead if crisis calms and if they take a market view, although I have not yet done any assessment on current or forward valuation/risks, and its share price hasn't budged much recently, although your £ buys more rubles).

http://moex.com/en/

One MOEX financial review from April '14. http://www.gazprombank.ru/upload/iblock/3ae/gpb_moex%20initiation%20of%20coverage_180414.pdf

http://www.institutionalinvestor.com/Article/3359817/Banking-and-Capital-Markets-Banking/Russian-Stocks-Stagnate-but-Moscow-Exchange-Shares-Soar.html

July ' 14: http://www.bloomberg.com/news/2014-07-02/russia-s-central-bank-to-sell-bourse-stake-after-rally.html

I did invest in Prosperity Voskhod Fund Limited, via AIM, some years ago.. but got bored with no movement at all in price over 12 months, and sold. It seems they delisted earlier this year from AIM. They look to be continuing, office in London etc, as Prosperity Capital Management, and claim quite a lot in funds under management. Maybe a source to check, just for their market views, when they release updates - and I can't find anything much for December there so far: https://prosperitycapital.com/

Yesterday from WSJ's MarketWatch....

The chart of the day

This chart from Holger Zschaepitz, a senior editor at the German daily Die Welt, pretty much speaks for itself. One of the bits of fallout from Putin’s huge headache is that Google GOOG, +1.23% for the first time, is now worth more than the entire Russian stock market. Which one would you buy? See the next section for some advice on that question.

source: 18 December 2014 http://www.marketwatch.com/story/google-just-toppled-russia-and-its-got-apple-like-returns-in-its-sights-2014-12-18?page=2

2014-11-14

If you owned Apple Inc. (AAPL), and sold it, you could purchase the entire stock market of Russia, and still have enough change to buy every Russian an iPhone 6 Plus.

http://www.bloomberg.com/news/2014-11-14/apple-could-swallow-whole-russian-stock-market.html

Going back to earlier this year, when others saw value...

March 2014: http://www.theguardian.com/money/2014/mar/08/invest-russia-shares-plummet

Yesterday: http://www.telegraph.co.uk/finance/personalfinance/investing/funds/11297291/Time-to-buy-a-double-discounted-Russia-fund.html

Edited December 19, 2014 by Venger

[Venger]

not going to rush to make an investment decision. I did invest in Prosperity Voskhod Fund Limited, via AIM, some years ago.. but got bored with no movement at all in price over 12 months, and sold. It seems they delisted earlier this year from AIM. They look to be continuing, office in London etc, as Prosperity Capital Management, and claim quite a lot in funds under management. Maybe a source to check, just for their market views, when they release updates - and I can't find anything much for December there so far: https://prosperitycapital.com/

Just to be clear, I named them simply as one potential source of news/insight, from this point.

Reviewing the investment I made in PVF (delisted from AIM spring 2014), was more on longer term soppy good intentions; hoping that investments the fund made would be toward creating a more solid economy and improve living standards for ordinary Russians, and steady longer term growth prospects for shareholders; which tends not to be so much a priority for many companies and those at the top. As I recall it I bought at 1.10 in late 2011 and closed out for 1.15 in 2012. Chart below performance of PVF 2010 to delisting in early 2014.

Prosperity Voskhod Fund Limited's investment objective is to achieve capital growth by investing in a portfolio of securities involved in the corporate restructuring and consolidation which are expected to take place in Russia and other newly independent states ('NIS') of the former Soviet Union. The Company will invest primarily in small and medium-sized companies, with the aim of.... http://shares.telegraph.co.uk/fundamentals/?epic=PVF

More recently... been hit hard.

Funds slammed by Russia's stocks and ruble struggles

16 Dec 2014

[..]The small band of hedge funds that focus on Russia have among the worst returns of the year across the industry.

The Firebird New Russia Fund is down 26 percent this year through Nov. 30; the Kaltchuga Fund is off 32.6 through Dec. 5, according to a hedge fund performance report by HSBC Alternative Investment Group; and the Russian Prosperity Fund, which avoids shorting stocks, is down an estimated 50 percent through Dec. 16, an official at the fund said.

Reached late Tuesday by phone, Mattias Westman, founding partner at Prosperity Capital Management, which runs the flagship Russian Prosperity Fund, was stalwart. Having invested in Russia for 20 years, including during the 1998 currency crisis, he said he believes that once the near-term tumult passes, the economy will strengthen broadly. Over the years, "Those who have strong nerves have benefited quite a lot," he said.

http://www.cnbc.com/id/102273812

Alden Global Capital Wins On Ruble Short; Value investors Lose

December 18, 2014

[..]But of course not everyone has left the market, and those who stayed behind are among the worst performing funds in the world. CNBC reports that Kaltchuga Fund is down 32.5%, the Firebird New Russia Fund is down 26%, and the Russian Prosperity Fund has lost nearly half its value this year. According to data from hedge weekly, the Russian prosperity fund was down over 28% through November 20th, making it the worst performing fund which is tracked of the year.

The question now is when hedge funds and other risk tolerant investors should start looking for deals in a market that has been hit so hard, there are almost certainly some strong companies caught up in the general negative sentiment.

“These kinds of crises eventually end, and it will be the case here. Buying opportunities will arise, but they will be very specific and must be studied carefully,” says emerging markets fund manager at Franklin Templeton Mark Mobius, report Miles Johnson and Madison Marriage for the FT.

There are some concerns that Russia will institute capital controls until its markets stabilize, but when the immediate crisis starts to subside (especially if oil prices rebound in the coming months), at some point value investors will want to look for Russian stocks with strong balance sheets and some kind of moat. Many value investors have been doing that, but at least so far, the results have been poor.

http://www.valuewalk.com/2014/12/alden-global-russia/

[Errol]

The RSX ETF is at big lows now.

[200p]

I play on momentum breakouts, rather than bottom fishing. It could wallow at these low levels for some time. I'm looking for 2 year new highs on high volume, that's when I would take that as a buy signal.

Edited December 25, 2014 by 200p

[porca misèria]

I play on momentum breakouts, rather than bottom fishing. It could wallow at these low levels for some time. I'm looking for 2 year new highs on high volume, that's when I would take that as a buy signal.

So at what stage in 2009 did you buy the UK market?

[Tom321]

Is commodities a good area to invest generally or just for Russians...?

[Will!]

http://www.investegate.co.uk/petropavlovsk-plc/rns/results-of-general-meeting/201502261514129996F/

A General Meeting of the Shareholders of Petropavlovsk PLC (the Company) was held on 26 February 2015 at 11.00 a.m. at 3 More London Riverside, London SE1 2AQ.

The special resolution (Resolution 1) relating to approvals in relation to proposed 157 for 10 Rights Issue of up to 3,102,923,272 New Ordinary Shares at 5 pence per New Ordinary Share, Bond Exchange Offer and Consent Solicitation and adoption of New Articles of Association and the ordinary resolution (Resolution 2) approving the Founders Arrangements being a related party transaction for the purposes of the Listing Rules (the Resolutions) and as set out in the notice of General Meeting dated 2 February 2015, were duly passed on a poll.

This is the refinancing plan.

DOI: Still in.

Edited February 28, 2015 by Will!

[Venger]

With that in mind, I would be looking at something like how to invest directly in MOEX (Moscow Exchange) - or others without a specialist fund? (At least MOEX is up there on what I consider Russia's 'prestige' importance rating (but doesn't make it invulnerable or anything), and I expect Russia will be seeking a lot of inward investment in years ahead if crisis calms and if they take a market view, although I have not yet done any assessment on current or forward valuation/risks, and its share price hasn't budged much recently, although your £ buys more rubles).

http://moex.com/en/

One MOEX financial review from April '14. http://www.gazprombank.ru/upload/iblock/3ae/gpb_moex%20initiation%20of%20coverage_180414.pdf

http://www.institutionalinvestor.com/Article/3359817/Banking-and-Capital-Markets-Banking/Russian-Stocks-Stagnate-but-Moscow-Exchange-Shares-Soar.html

July ' 14: http://www.bloomberg.com/news/2014-07-02/russia-s-central-bank-to-sell-bourse-stake-after-rally.html

Ok performance

https://uk.finance.yahoo.com/echarts?s=MOEX.ME#symbol=MOEX.ME;range=5y

[Venger]

Although I did not take any position. Didn't know how best to.

[Venger]

Sterling has hardened-up against Ruble over same time.

[The Masked Tulip]

Aren't there various miners and oil companies in Russia listed on the London AIM? Usually mostly owned by some oligarch.

Not just in Russia itself but also in the former Soviet stans.

[Arpeggio]

Considered Russia recently. There is sentiment (such as from German politician) that the sanctions should be weakened / lifted soon. A month or so ago the EU renewed the sanctions for another 6 months (I would invest during the low of sanctions not after). Oil prices have gone up a bit but not significantly and may help if they go up some more.

I invested in Russia since before the Ukraine incident so have been in the minus figures for a fair while. As soon as Ukraine happened and it went down I put more money into Russia and am still holding. May possibly put in some more cash soon.

[Will!]

Obviously I'm talking my book but I think sanctions being lifted and further so-called "accommodating" monetary policy inflating commodity prices will be good for the russian market.

[Arpeggio]

Obviously I'm talking my book but I think sanctions being lifted and further so-called "accommodating" monetary policy inflating commodity prices will be good for the russian market.

ugotabook? I Agree. I've been reading about Russia a bit. Much Western media seems to want to make it sound like Russia is doomed but I don't buy it. My Russia fund is on the rise I put more money in just now. India looks interesting as the fastest growing economy in the world, I have some money on that too although was a bit late to the party on that one. Saw some other funds on a low starting to recover but chose not to invest as it had Middle East F*** upper Oil companies and pharmaceuticals.

I generally steer clear of the UK, US, and EU. The chart posted on this thread called "Shifting in the Middle" gives some of my reason why.

http://www.housepricecrash.co.uk/forum/index.php?/topic/211515-millennials-may-be-first-to-earn-less-than-previous-generation/

[Errol]

RSX ETF.

People like Jim Rogers say that Russia is a great market to invest in. Long term. He's been over there a lot recently.

Edited July 24, 2016 by Errol