Why now’s the time to take a passive approach to Russia

Updated: Sep 5, 2018

Da Vinci Capital, a private equity manager making investments in emerging markets and Russia, launched ITI Funds as a European ETF platform in February of this year.

Shortly after ITI Funds launched two Russia-focused Ucits ETFs, one to focus on the equity market and one to focus on fixed income.

It’s understandable why people would want an active product to allocate to Russia but an ETF approach can produce similar returns without carrying as much risk.

That is according to ITI Funds’ managing director Elio Manca. Speaking to Citywire Selector, Manca discussed why now is a prime time to launch ETF products solely focused on the World Cup host.

One of the main reasons Manca said the team decided to launch the products earlier this year was due to growing investor demand.

‘Our initial pocket of investors are Russian, they have a lot of interest in our fixed income products and that is where we expect to see the most inflows. From international investors, we are seeing interest in both the fixed income and equity products.

To read the full story, please, visit Citywire Selector