Invest in Russia

meester

Just admiring my Neptune Russia and Greater Russia fund, down 52.5% from purchase, thought I'd investigate and see about buying some more at the new lower price.

Checking with Hargreaves Lansdown, it says:
The Russian stock market has fallen sharply for a number of reasons; chief among them is the fall in the oil price and commodities generally. Other major factors were the problems surrounding Mechel, which was accused by the government of charging higher prices to Russians than to foreigners, raising fears of state interference. That problem now appears resolved, but investors were spooked further by the conflict with Georgia in South Ossetia.
While it is perfectly true to say that the Russian economy has grown as a result of oil, Russian oil companies are relatively insulated from everyday gyrations in the oil price because so much is taken in tax by the State. For there to be a serious problem for them the oil price would have to fall below $55 per barrel; I do not believe this is a realistic possibility in the foreseeable future

Really?

The benchmark US Light crude price fell $5 per barrel on the New York Nymex exchange yesterday to $69.15 (£40.05), less than half the value at oil’s peak, while London’s Brent crude futures contract fell to $65.70.

Holdings?

Top 10 holdings

Top 10 holdings currently unavailable.


Hmm, really inspiring my confidence.

purch

For Hargreaves Lansdown to say anything bad about this Fund, would require the Dampier dope to admit his "advice" (oops sorry it's not advice is it ?....just opinion) over the last 12 months has been totally wrong !!!

That ain't gonna happen :cool:

Old_Slaphead

One or two (well a few) of the funds they've featured over the last year or so have fallen heavily (ie much more than the benchmark).

Count_Dante

There is also the possibility of Russia nationalising (or effectively nationalising) successful businesses at below market price, as happened with BP and Shell. This scares off investors for obvious reasons.

purch

On this subject, I noticed this story on Bloomberg the other day....

Vladimir Putin came to power in 2000 vowing to destroy Russia's oligarchs ``as a class.'' Within two years, he'd driven two into exile and imprisoned another. Now, he may use the global markets meltdown to finish the job. The $50 billion that the prime minister and President Dmitry Medvedev have pledged to lend cash-strapped companies will extend state control over business leaders.

Billionaires seeking bailouts -- including Oleg Deripaska, Russia's richest man, and Mikhail Fridman -- will have to give authorities veto power over their companies' financing decisions. ``This will give the state more leverage over the country's biggest companies and main industries,'' said Chris Weafer, chief strategist at UralSib Financial Corp. ``In 2008, there is only one real oligarch: the state.''

All this marks a reversal from a decade ago, when oligarchs bankrolled Boris Yeltsin's almost-insolvent government. As recently as April, Russia's 100 wealthiest citizens had a combined fortune equivalent to about a third of the economy, Forbes magazine estimated. The nation's 25 wealthiest businessmen have seen their worth shrink by $230 billion, or 62 percent, according to Bloomberg calculations.

And Putin controls the strings on the biggest remaining purse -- $531 billion in government reserves, which he is doling out through state-run Vnesheconombank, or VEB, where he presides as chairman of the supervisory board.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aaorNZeDn54A