With the 2018 World Cup underway, all eyes are on Russia. Having generated negative headlines in the international political arena, it is encouraging, and perhaps surprising, to see the ongoing scale of foreign investment in the country, says Elio Manca, managing director of ITI Funds.
The truth is that Russia’s long-term investment drivers are still in full force, leading many to continue overweighting the country or even using current volatility to increase their position.
In fact, Russia’s largest lender, Sberbank, reported that UK and US investors hold nearly 70% of its shares, while global investors were the driving force behind Russia’s $4bn (£3bn, €3.4bn) Eurobond issue in early March.
Russia’s growth story continues to have traction, helped by the Central Bank’s gradual approach to monetary easing – meaning macroeconomic indicators in the country remain very strong. Putin’s recent landslide election victory has granted leadership stability, and international data on Russia is still pointing to strengthening growth throughout 2018.
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