Despite recent declines, Barings Investment believes Russia's debt free status, low levels of borrowing and attractive equity valuations will underpin long term investment prospects.
Having delivered a positive return of 19.6% from the MSCI Russia 10/40 Index in the first three months of the year, the Russian equity market has suffered a series of sharp declines to -1.0% in US dollar terms. Barings believes the ongoing problems in the Eurozone are the main contributing factor. Investors are back in "risk off" mode, and emerging markets are out of favour for the moment. Domestically, investors have been put off by Russia's ongoing political developments and concerns over the reform agenda have brought additional uncertainty. However, on the economic front, Barings...
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